President: Resorts must deposit 40% of forex; dollar salaries should not be halted

President Dr. Mohamed Muizzu on Monday said that resorts must deposit 40 percent of their foreign currency revenue into the Maldives Monetary Authority (MMA), stating that the requirement “will not be difficult” for the industry and that staff salaries should not be stopped in dollars as a result of the change.

He made the remarks at a ceremony held at the President’s Office on Monday afternoon to ratify the Foreign Exchange Bill, which formalises the 40 percent conversion requirement for resorts.

He said tourism receipts reached USD 5.6 billion last year, of which USD 3.8 billion entered the banking system, arguing that the sector has sufficient inflows to meet the 40 percent requirement.

The President said resorts would still be able to pay salaries, service loans and cover operational expenses even after converting 40 percent.

He added that the government aims to shift domestic transactions fully to Maldivian rufiyaa by 2030, with USD reserved for imports and foreign obligations.

The President’s comments come amid heightened concern in the tourism sector.  

Last week, Parliament passed the amendment mandating resorts to deposit 40 percent of their monthly dollar income in Maldivian banks, a sharp increase from the previous 20 percent requirement.  

The Maldives Association of Tourism Industry (MATI) has publicly expressed concern, saying the requirement could strain resort operations, which rely heavily on USD for salaries, service charges, rent, taxes, and foreign-currency loans.

Opposition figures, including former President Mohamed Nasheed, have warned that the policy could “bankrupt” resort businesses and harm related sectors.

The government, however, maintains that the reform is essential to stabilise the foreign exchange market, curb black-market dollar trading, and improve circulation of USD within the formal banking system.

President Muizzu reiterated that the policy is based on technical studies and international comparisons, and said the government will continue consultations with industry stakeholders.