The Maldives is currently facing significant pressure on its foreign currency reserves due to a high demand for US Dollars, driven by the limited circulation of foreign exchange within the banking system, rising import costs, fuel prices, and debt obligations. To address these challenges, the Maldives Monetary Authority (MMA) has introduced amendments to the foreign exchange regulations, mandating that resorts exchange 40% of their revenue through local banks. However, these changes do not restrict resorts from paying employee salaries in US Dollars. Furthermore, the MMA has established mechanisms to provide concessions for resorts with external financial obligations. In line with the national objective to conduct all domestic transactions in Maldivian Rufiyaa by 2030, the government is also implementing stringent measures to curb the black market. These include imposing fines on businesses transacting at unofficial rates and closing down unlicensed money changers.
