Committee greenlights foreign currency bill

The Foreign Currency Bill has been discreetly passed by the Public Accounts Committee of the People’s Majlis.

The bill, drafted by the Maldives Monetary Authority (MMA), was submitted to the People’s Majlis on Monday.

The bill, presented by MP for Inguraidhoo constituency Ibrahim Falah, was debated during Tuesday's parliamentary sitting.

On Tuesday, the bill was accepted and sent to the Public Accounts Committee, which greenlighted it on Wednesday.

The work on the bill, expected to significantly impact tourism – the Maldives’ most central industry – was conducted in secret within the committee.

State media, Public Service Media (PSM) revealed that information about the committee's discreet work was shared with them by MP for Central Hithadhoo constituency Ahmed Azaan Marzooq.

According to the controversial bill, for every tourist arriving at resorts in the Maldives, either USD 500 or 20 percent of the foreign currency income received for that month must be converted through the banking system. For tourists arriving at guesthouses, vessels operating in the tourism industry, and other such places in the Maldives, either USD 25 or 20 percent of the foreign currency income received for that calendar month must be converted.

Citing the Central Hithadhoo lawmaker, PSM reported that the committee made two changes to the bill: raising the age of exemption from dollar conversion from 10 years to 12 years and giving resorts the option to convert less than 20 percent of their foreign currency income if they face financial difficulties. This leniency will be granted after a case review by the central bank.

When the central bank initially announced the new forex regulation, it required every resort to convert USD 500 for each tourist without any exceptions. As this led to significant concerns from the industry, President Dr. Mohamed Muizzu stated that the regulation would not be changed and must be implemented.

While the government-controlled parliament is rushing through the work on the forex bill submitted by the government, it is noted that there has not been an opportunity for broad public input on the bill. Although Maldives Association of Tourism Industry (MATI) representatives were summoned to the committee, it has been revealed that the committee did not pay much heed to MATI's proposals.