News Desk
Resorts will face no hardship in exchanging 40 percent of their foreign currency revenues, and the move will not prevent operators from paying staff salaries in US dollars, President Dr Mohamed Muizzu said on Monday.
Speaking at a ceremony held at the President’s Office to ratify several bills passed by the People’s Majlis, President Muizzu addressed the recent amendments to the Foreign Currency Act, which make it compulsory for resort operators to exchange a 40 percent share of their foreign earnings through local banks.
The President stated that the higher percentage of dollars surrendered by resorts will boost the foreign reserves of the Maldives Monetary Authority (MMA). The government intends to use these funds directly for essential public needs, including backing import payments and settling foreign telegraphic transfers (TTs), bringing direct benefits to everyday citizens.
Calculations clearly show that exchanging 40 percent of earnings will not strain resort operators, President Muizzu argued. He noted that the new requirement will not impede their ability to repay development loans, settle operational costs, or cover staff payroll.
“There will be no difficulty for resorts to exchange 40 percent,” President Muizzu said.
Backing concerns raised by resort workers, the President insisted that staff who currently earn in US dollars must continue to receive their pay in forex after the mandatory exchange, adding that operators have enough liquidity to handle both. He called on resort owners to comply with the law and fulfill their national responsibility for the public good.
“Therefore, no employee receiving their salary in dollars should face a pay cut, nor is there any reason to make one,” President Muizzu said. “They must continue to receive their salaries as usual. I do not believe there is any ground to cause difficulties of any kind for them.”
The President noted that the amendment was not introduced on a whim, but was formulated after thorough study and financial analysis by qualified technical experts.
The MMA will work closely with the tourism industry to implement the mandate smoothly, President Muizzu added, expressing confidence that resort operators will extend their full cooperation to the central bank.
