President upholds commitment to Foreign Exchange Regulation amendments

President Dr Mohamed Muizzu has reiterated his commitment to maintaining the amendments to the Foreign Exchange Regulations. He made these remarks during a function held at the Youth Centre to mark the government’s one-year anniversary. In his speech, the President outlined the rationale behind the government’s decision to amend the foreign exchange rules, emphasising the nation’s high expenditure on essential imports such as oil and food. He noted that current state revenues are insufficient to meet these demands. The President stated that the amended regulations aim to channel 20% of foreign exchange entering the country into the banking system, ensuring a more sustainable economic framework. He firmly dismissed the possibility of reversing these changes. “We will not change the rules. It has been made abundantly clear that compliance is necessary. Everyone must adhere to the regulation of depositing USD 500. This government stands unwaveringly with the people, and this matter will also be addressed through Parliament,” he said. The Maldives Monetary Authority (MMA) has replaced the outdated 1987 Foreign Exchange Trading Rules with modernised regulations to strengthen foreign exchange management. Under the revised rules, tourism service providers are categorised into two groups, with specific requirements for foreign currency deposits based on tourist activity. Category A includes resorts, large hotels, and tourist vessels, where each tourist is required to deposit USD 500 into the banking system. The amendments aim to ensure sustainable foreign exchange management and reinforce the stability of the Maldivian economy.