The Maldives Monetary Authority has opened a draft bill for public consultation, aiming to formalize and enhance the Maldives' foreign currency exchange regulations. The move comes after President Dr. Mohamed Muizzu announced plans to integrate the existing regulations into a robust legal framework.

The proposed legislation consolidates current rules while imposing stricter requirements on businesses earning foreign currency. Tourism businesses are required to deposit their earnings in local banks, with the mandate now extended to non-tourism entities earning over USD 20 million annually.

Banks will also face restrictions, being allowed to exchange no more than 25% of foreign income from these businesses. Although the per capita exchange rate remains unchanged for most tourism facilities, a new rate of USD 25 per tourist has been proposed for guest houses and city hotels with over 50 beds.

Key Provisions of the Draft Bill include:

Category A: Resorts, large hotels, and tourist vessels must deposit USD 500 per tourist.

Category B: Guest houses and city hotels must deposit USD 25 per tourist.

Category C: Non-tourism businesses must deposit up to 25% of their foreign currency revenues.

The bill provides exemptions for complementary or free stays at tourist facilities, children under the age of two, and tourists staying less than 24 hours.

Businesses unable to meet the stipulated exchange amounts can seek permission to deposit lower amounts.

President Muizzu expressed his support for the MMA's efforts, noting the retention of the USD 500 deposit rate for resorts as critical to achieving the government’s economic goals. In a post on X, he highlighted the benefits of the Category C provision, which requires businesses to deposit up to 25% of foreign currency revenues. He emphasised that this will increase dollar availability and help meet targets announced on November 17.

The MMA is encouraging public feedback on the draft bill, signaling its commitment to refining the legislation based on stakeholder concerns.