BML launches online portal for mandatory USD exchange for tourism sector

The Bank of Maldives (BML) on Tuesday launched a mandatory exchange portal through its Internet Banking platform to make it easier for resorts, hotels, guesthouses, and other tourism-related businesses to manage their mandatory USD exchanges as required under the Foreign Currency Act.

According to BML, the portal will allow businesses to view a comprehensive activity report that enables them to track and review all mandatory transactions conducted through the bank.

USD will be exchanged at the bank's selling rate of MVR 15.42.

The Foreign Currency Act, which took effect on January 1, categorizes tourist establishments into two types.

Category-A tourist establishments are classified as registered resorts, integrated tourist resorts and private islands. Such establishments are required to either exchange USD 500 per tourist or 20 percent of the monthly revenue.

Meanwhile, Category-B tourist establishments are classified as registered tourist vessels, tourist hotels and tourist guesthouses. Such establishments are required to either exchange USD 25 per tourist or 20 percent of the monthly revenue.

The law seeks to address a USD crunch in the Maldives and inject more foreign currency into the banking system.

BML said that the online platform aims to streamline mandatory exchanges for the tourism sector, enhancing businesses to manage their currency exchanges conveniently and effectively while ensuring compliance with regulatory requirements.

Additional information is available on the bank's website.