Government to amend law requiring resorts to deposit 40% of dollar earnings

Maldives Monetary Authority (MMA) Governor Ahmed Munawar says the government has decided to propose amendments to the Foreign Exchange Act that would require resorts to deposit 40 percent of their dollar earnings into Maldivian banks.

Speaking at a press conference with three ministers at the President’s Office on Monday, Governor Munawar said the amendment would increase the current requirement from 20 percent to 40 percent.

The proposed amendment also includes changing the deposit cycle from once every three months to once every month.

“After extensive study, we are making these changes to ensure the tourism sector can absorb shocks. The long-term aim is to take this to 100 percent,” he said.

The governor added that although the dollar market temporarily slowed due to the Iran conflict, there is no economic justification for the dollar to rise as sharply as it has. He said the recent spike is driven by speculation and individuals setting their own rates outside the formal system.

A special operation has been launched to target unlicensed money changers. According to the governor, despite an increase in tourism revenue and bank deposits, government reserves have declined due to a doubling in oil costs.