MMA reminds FX conversion deadline on Wednesday

The Maldives Monetary Authority (MMA) has on Monday reminded all entities with foreign exchange earnings to complete their required conversions before next Wednesday, in line with the recent amendment to the Foreign Exchange Act.

Under Section 10 of the Act, a portion of foreign currency earned in each calendar month must be converted before the end of that month and no later than the 28th day of the following month. MMA said all parties subject to the law must ensure compliance within the deadline.

The authority further stated that the names of those who fail to meet the conversion requirement by the deadline will be publicly disclosed, as stipulated under regulations issued by MMA.

With the amendment to the Foreign Exchange Act, resorts are now required to deposit 40 percent of their monthly foreign exchange earnings with Maldivian banks. The amendment came into effect on January 1. Previously, when the Act was first implemented, resorts were required to deposit only 10 percent of their earnings.

The requirement for guesthouse businesses remains unchanged. Guesthouses must continue to mark USD 25 per tourist per head, or 20 percent of total revenue, as already provided for in the law.