Foreign currency exchange rates on black market are already beginning to decline: President Muizzu
31 އޯގަސްޓު 2026 | ހޯމަ 18:29President Muizzu stated that the recent amendment to the Foreign Exchange Act, which requires resorts to convert 40 percent of their revenue through local banks, will bolster the state's foreign currency reserves and streamline the importation of essential goods. Assuring that this policy change was implemented following comprehensive technical research, the President emphasized that the new regulations would not hinder the operational activities of the resorts.
A photo of US dollar banknotes. | getty images
President Dr. Mohamed Muizzu has stated that foreign exchange rates on the black market are already beginning to decline.
President Muizzu made these remarks while speaking at a ceremony held at the President's Office on Monday to ratify several bills passed by the People's Majlis.
"Since the government announced these measures, and even today as the foreign exchange bill was ratified, we are already seeing a decline in the black market exchange rates," President Muizzu stated.
Regarding the first amendment to the Foreign Exchange Act, the President stated that the changes brought to the law represent a significant reform. Highlighting the shift from the previous requirement for resorts to exchange $500 per guest to a new mandate of exchanging 40 percent of gross sales through banks, President Muizzu noted that this move would "increase the foreign currency available to us." He further emphasized that the resulting increase in funds for the Maldives Monetary Authority (MMA) would facilitate spending on essential services.
Current data indicates that the tourism industry generated $5.6 billion in revenue last year. However, only $3.8 billion of that total entered the Maldivian banking system. Of this $3.8 billion, only 21 percent was actually exchanged through the banks. Prior to the implementation of the current regulations, these figures were even lower, with only 10 percent of funds being exchanged.
President Muizzu stated that once the dollar conversion requirement for resorts is increased to 40 percent, the government intends to utilize the resulting funds to facilitate telegraphic transfers (TTs) for imported goods. He emphasized that priority will be given to businesses importing essential commodities.
President Muizzu stated that while several resorts had raised numerous concerns regarding the legislative amendments, the changes were implemented following comprehensive and thorough research.
"This was not an arbitrary decision. It was the result of extensive work conducted by academic, technical, and highly qualified experts. The Maldives Monetary Authority, the Ministry of Finance, the Ministry of Economic Development, and all other relevant ministries were involved in this process. This work was carried out through meticulous accounting and the collection of comprehensive statistical data."
President Muizzu has assured that resorts will face no difficulties in complying with the requirement to exchange 40 percent of their dollar earnings.
"We are certain of this. Converting 40 percent of foreign exchange earnings will not hinder the ability to repay resort development loans, pay employee salaries, or cover operational expenses. This is a certainty," President Muizzu stated.
The President further noted that some parties are exchanging dollars at inflated rates on the black market, asserting that this is "undoubtedly occurring because there is excess liquidity" in the system.
"Furthermore, the records clearly demonstrate that exchanging 40 percent is not something that would pose a challenge to any resort," Muizzu reiterated.
