President Dr. Mohamed Muizzu has ratified the amendment to the Foreign Exchange Act. The President assured that this amendment would not hinder the operations of resorts.
Previously, the law required the exchange of either USD 500 per tourist or 20% of the total revenue. However, with the current amendment, Category-A tourism establishments are now required to exchange 40% of their foreign currency earnings into Maldivian Rufiyaa.
The President stated that financial calculations demonstrate that the 40% requirement can be met after deducting loans, salaries, and operational expenses. Furthermore, he noted that the funds would be utilized for essential purposes, such as processing telegraphic transfers (TTs) for basic commodity imports.
According to statistics, the tourism industry generated USD 5.6 billion last year, with USD 3.8 billion entering the banking system. However, the President highlighted that only 21% was exchanged through banks, and prior to the ratification of this law, this figure stood at 10%. The President called upon resorts to provide their cooperation, viewing this as a national responsibility.
