The primary objective of the government’s proposed amendment to the Foreign Exchange Act is to strengthen foreign currency exchange procedures and provide relief to Maldivian businesses. Under this amendment, the threshold for mandatory deposit of foreign currency earnings into banks is set to be increased from $15 million to $25 million per annum.
Key changes include a requirement for large-scale tourism businesses (Category A) to exchange 20% of their total monthly income, while 100% Maldivian-owned businesses will be required to exchange 7% of their earnings. Furthermore, these funds must be deposited into banks licensed by the Maldives Monetary Authority (MMA). A 30-day period has been established to revise the relevant regulations to facilitate the implementation of these changes.
