No intention to ease foreign currency exchange requirements: Attorney General

Relevant government authorities have announced that they have begun implementing stringent measures to address the emergence of a dollar black market in the Maldives, where foreign currency is being traded at significantly inflated rates.

A press conference was held on Monday to provide details regarding the collaborative efforts undertaken by all relevant institutions over the past three weeks, as well as an update on ongoing operations.

Speaking at the meeting, Attorney General Ahmed Usham stated that foreign exchange rates in the Maldives are being artificially inflated through market manipulation. He emphasized that the government is implementing numerous measures to address this issue and assured that these efforts will continue unabated.

The Attorney General further emphasized that all foreign exchange transactions must be conducted strictly in accordance with the law, either through banks or entities specifically licensed by the Maldives Monetary Authority (MMA). He also noted that engaging in the business of currency exchange without MMA authorization is illegal, and warned that necessary legal action will be taken against those found in violation of these regulations.

Furthermore, Attorney General Usham stated that under the new regulatory amendments, entities earning income in foreign currency are required to obtain authorization from the Maldives Monetary Authority (MMA) before making overseas payments or transferring funds abroad.

He also urged all parties to comply with the foreign exchange regulations and the Banking Act.

In response to a journalist's question, the Attorney General stated that the government currently has no intention of easing the 40 percent foreign currency conversion requirement. He noted that this decision was made after extensive research by the Maldives Monetary Authority (MMA), which identified it as the most critical measure to implement at this time. Furthermore, he highlighted that efforts are underway in collaboration with the MMA to strengthen the legal framework to address various challenges within the sector. He added that the necessary legislative amendments would be introduced without delay.

Furthermore, he noted that while foreign exchange trading has been regulated under Maldives Monetary Authority (MMA) laws and regulations for many years, the situation has deteriorated to this extent due to a prolonged failure to implement necessary legal measures and maintain effective oversight.