The central bank, Maldives Monetary Authority (MMA) has revealed that it expects local tourism establishments to exchange over USD 40 million this month, following the implementation of new foreign exchange laws.
With the ratification of the Foreign Exchange Act, tourism businesses are now required to convert a portion of their foreign currency earnings into local currency, the Maldivian Rufiyaa (MVR) through local banks. In October last year, regulations were amended accordingly. The forex act will come into effect on January 28.
Based on the sales reports for the month of October, MMA has estimated that over USD 40 million will be exchanged with banks for the month of October alone. This is approximately MVR 617 million.
According to the law, resorts have to exchange USD 500 per guest that stays at the resort, while local guesthouses are required to exchange USD 25 per guest. While a total of 175 resorts operate in the Maldives, MMA has thus far received the sales reports of 138 resorts. The reports of 37 resorts are yet to be submitted.
The new regulations are aimed at increasing the foreign currency reserves and improving the financial stability of the Maldivian economy.