Yameen: President talking ‘beyond his height’ on new foreign exchange regs

Former President Abdulla Yameen Abdul Gayyoom has criticized President Dr. Mohamed Muizzu for his remarks regarding the central bank, Maldives Monetary Authority (MMA)’s new foreign exchange regulation for the tourism sector, citing the President is talking “beyond his height”.

He delivered the critique while speaking at a People’s National Front (PNF) event on Monday night. It was in reference to remarks made by President Muizzu during an event held on Sunday night to mark the first anniversary since the current administration assumed office. In this regard, the President affirmed that the new foreign exchange regulation that required tourism sector businesses to exchange a set amount of USD per tourist will not be amended.

Yameen raised the question as to whether MMA amending or not amending a regulation has any correlation to the President as MMA is an independent and a separate legal entity. In light of this, the former president accused the incumbent of influencing a matter that he has not direct authority over. Instead of thus, Yameen called on President Muizzu to proceed by consulting MMA’s governor.

“It is saddening to see remarks like this, claiming MMA’s regulations will not be amended. It is also an indication that things are being done without any legal consultation and in an autocratic manner,” he added.

Yameen attributed the USD shortage and the inception of a USD black market to wasteful state expenses. He particularly expressed concern regarding high expenses incurred for official visits undertaken by individuals in government posts to various foreign nations in large delegations. The former president, underscoring that MMA’s governor is hesitant to provide financial counsel to the government regarding the matter, raised the question as to why.

He also questioned why the government was trying to paint a picture that it is unable to attend to the needs of the citizens because they are not receiving revenue from the tourism industry while matters unfold this way.

“They want the citizens to know they are unable to attend to their needs because of the shortage in USD. Hence, why don’t the citizens ask, how much of USD earned by the state this year was spent on their needs. How much was spent on [President] Muizzu’s trips. How much was spent on recurrent expenses,” he suggested.

The new regulations require ‘Category A’ tourist establishments - tourist resorts, integrated tourist resorts and resort hotels – to exchange USD from a local bank at the rate of USD 500 per tourist for all monthly arrivals before the 28th day of the third month following each respective month.

Meanwhile, ‘Category B’ tourist establishments – tourist guesthouses and hotels in residential islands with registered rooms of 50 or under - must exchange USD in the same manner, but at the rate of USD 25 per tourist.

MMA has stated that 173 out of 174 resorts operating in the Maldives had registered for USD exchange by the October 30 deadline.

While tourism sector businesses have expressed their reservations regarding the new regulation, President Muizzu has reiterated that there will be no changes.