President Dr. Mohamed Muizzu has decided tonight to bring significant changes by 2026 if the regulation requiring resorts and guesthouses to convert a certain amount of their dollar earnings through banks is implemented and things proceed as planned.
Speaking at a ceremony held at the Social Center to mark the government’s first anniversary, President Dr. Muizzu said that he will not change the regulation mandating the conversion of dollars earned from the tourism sector through Maldivian banks, and those working in the sector must comply with the law and regulations. As the President said this, everyone in the center stood up and applauded.
“I’m not going to change the regulation. I won’t change the regulation, I’m saying this very clearly,” the President said.
President Dr. Muizzu said that in the past year alone, the tourism sector generated a total revenue of $4.5 billion. However, he said only 1.5 percent of that was converted through banks. The President also said that if dollars are converted according to the newly set regulation, about 15-20% could be converted through banks.
“The benefit of this is that government companies currently have to obtain dollars unofficially from the black market at high prices. When dollars have to be obtained from the black market at high prices, it actually drives up the black market rate,” President Dr. Muizzu said.
“So, if the tourism industry starts converting to banks in accordance with the regulation starting from January 1, God willing, by July of next year at the latest, arrangements will be made for government-owned companies to obtain dollars directly at the official rate without having to convert through the black market. This will bring about a significant improvement.”
With this change, the President said that instead of the current $500 sold to each passenger departing from Velana International Airport, $1,000 could be sold. However, he said this could only be done in the first quarter of 2026 if things go well.
“If $1000 can be bought at the bank rate, it will be a great relief for ordinary citizens traveling abroad. So within the first quarter of 2026, we can make $1000 available if this starts from January,” the President said.
The President also said that if dollars are converted sustainably from next January to the first quarter of 2026, the credit card limit could be increased to $1400. The current credit card limit is $700.
In addition, the President said that the proportion of dollars released for TT (Telegraphic Transfer) will be increased and this will be implemented from July of next year.
“I would say that we will stand on the side of the people. I’m not going to change this regulation. I won’t change it. I’m saying very clearly that I won’t change the regulation,” the President said.
According to the new regulation published by MMA, these measures were taken to strengthen the retention of foreign currency earnings in the Maldives and increase foreign currency liquidity.
According to it, resorts, hotels, and vessels categorized as Category A must deposit and convert to rufiyaa an amount equivalent to $500 per tourist for the total number of tourists arrived that month.
And guesthouses and hotels operating in inhabited islands categorized as Category B, which have registered 50 rooms or fewer, must deposit and convert to rufiyaa an amount equivalent to $25 per tourist for the total number of tourists arrived that month, as stated in the MMA regulation.
