The Maldives Monetary Authority (MMA) has shared a draft bill on foreign currency exchange with various stakeholders, inviting feedback on its provisions. The proposed legislation includes specific exchange requirements, such as resorts exchanging $500 per tourist and guesthouses exchanging $25 per guest, with some exemptions outlined.
Stakeholders have been asked to submit their comments via email by Sunday afternoon.
Currently, under the existing regulations:
- Resorts, liveaboards, and guesthouses with more than 50 rooms (Category A) must exchange $500 per tourist.
- Guesthouses with fewer than 50 rooms (Category B) are required to exchange $25 per guest.
The draft bill introduces significant changes, including a new category for businesses earning $20 million or more annually in foreign currency. These businesses would need to deposit their foreign exchange earnings into a local bank account, with 25% of the revenue allocated for conversion.
Key proposed changes in the bill:
- New Inclusion for High-Earning Businesses: Businesses generating $20 million or more annually in foreign exchange must deposit these earnings in local bank accounts, converting 25% of the revenue.
- Category B Adjustments: All guesthouses and liveaboards, regardless of room count, would be classified under Category B, requiring $25 per guest to be exchanged instead of $500.
- Maintained Resort Requirement: Resorts would still need to exchange $500 per tourist.
- Exemptions for Certain Tourists: Tourists spending less than 24 hours in the Maldives, children under two years of age, and complimentary guests would not be subject to the exchange requirement.
- Exemption for Foreign-Registered Tourist Vessels: Tourist vessels registered outside the Maldives would be excluded from the bill.
The $500 per tourist requirement has faced criticism from over 70 resorts, with concerns raised about its impact. Despite this, President Mohamed Muizzu has affirmed his support for maintaining the policy, emphasizing its alignment with public interest and economic priorities.
