Foreign currency usage in the Maldives exceeds 40 percent: Governor
24 އޯގަސްޓު 2026 | ހޯމަ 11:05Governor Ahmed Munawwar has emphasized the need to transition tourism sector salaries and transactions to Maldivian Rufiyaa to bolster domestic currency demand. While the Maldives Monetary Authority aims to shift to a "managed float" exchange rate system by 2030, the Governor noted that this transition is contingent upon significantly strengthening the country's foreign exchange reserves.
Governor of the Maldives Monetary Authority (MMA), Ahmed Munawar. | President's Office
The Governor of the Maldives Monetary Authority (MMA), Ahmed Munawwar, has stated that the current rate of foreign currency usage in the Maldives exceeds 40 percent.
Speaking at a press conference held on Monday, Munawwar emphasized the need to reduce the reliance on foreign currency within the Maldives and stressed the importance of increasing the demand for the Maldivian Rufiyaa.
Munawwar stated that tourism revenues must be converted into Maldivian Rufiyaa. Noting that companies such as TMA currently pay their employees in US dollars, Munawwar further emphasized that the practice of paying salaries in foreign currency must be discontinued.
Tourism services are priced in foreign currency. Similarly, salaries at companies like TMA and various resorts are also paid in dollars. This practice of paying wages in dollars must change. Only then will the demand for the Maldivian Rufiyaa increase. Currently, the rate of foreign currency usage remains above 40 percent.Ahmed Munawwar
Governor Munawwar stated that the Maldives Monetary Authority’s (MMA) long-term vision is to transition from the current fixed exchange rate system to a managed float exchange rate regime. However, he noted that the central bank’s reserves currently lack the necessary strength to implement such a change, emphasizing that the MMA must first secure the capacity to cover at least three to four months of imports.
The Maldives Monetary Authority’s (MMA) vision is for the Maldives to adopt a managed floating exchange rate system. However, transitioning to such a system requires the MMA to maintain substantial reserves. Currently, we do not possess the necessary reserve levels or the financial capacity to make this shift. At a minimum, our reserves must be sufficient to cover at least three to four months of imports.Ahmed Munawwar
Munawwar stated that the MMA's vision is to implement these changes by the year 2030.
The value of the US dollar continues to rise in the Maldives' black market. In a move to curb this trend, the People's Majlis has passed an amendment to the law to impose fines on those engaging in black market currency exchange. Furthermore, the Minister of Homeland Security and Technology, Ali Ihusaan, has stated that buying and selling dollars at inflated rates constitutes a criminal offense.
