President ratifies Foreign Exchange Bill; resorts must convert 40% and black-market rates banned

President Dr. Mohamed Muizzu on Monday ratified the Foreign Exchange Bill, which prohibits the publication of foreign-currency rates above the Maldives Monetary Authority (MMA) reference price and mandates resorts to convert 40 percent of their dollar income through the banking system.

The bill was ratified at a ceremony held at the President’s Office this afternoon.

The bill, submitted by PNC MP Abdul Sattar Mohamed on behalf of the government, originally proposed that resorts deposit 20 percent of their USD revenue at a fixed rate of USD 500 per tourist. After committee review, the bill was sent back for further amendments, resulting in the current 40 percent mandatory conversion requirement.

A key amendment introduced by the Public Accounts Committee prohibits advertising, promoting, or publishing foreign-currency buying or selling rates above the MMA’s official rate. The bill makes it an offence to disclose or disseminate black-market rates through digital platforms or any other means.

Penalties under the bill include:

• Individuals: Fine between MVR 25,000 and MVR 500,000  

• Legal persons / registered businesses: Fine between MVR 100,000 and MVR 5 million  

The bill also allows criminal prosecution in addition to administrative penalties if the act constitutes an offence under another law.

The reforms follow MMA Governor Ahmed Munawwar’s recent announcement of measures to strengthen the Maldives’ foreign-exchange regime. The Maldives Association of Tourism Industry (MATI) was not present during the committee’s detailed review of the bill.

In a statement, MATI said its executive board was summoned to the President’s Office on Sunday for an emergency meeting attended by cabinet ministers and senior government officials. According to MATI, the government informed the association that investigations had uncovered involvement of “some resort operators” in black-market foreign-currency transactions and in artificially appreciating the dollar through illegal trades.

MATI stated that it is not aware of any such activity by its members.