News Desk
The Maldives Monetary Authority (MMA) has sent proposed legal changes to the Attorney General’s Office that will force all resorts to surrender 20 percent of their monthly US dollar earnings to local banks, eliminating the option to pay a flat $500 rate per tourist.
The central bank expects the amendments to reach the Majlis shortly. Under foreign exchange rules rolled out in January last year, “Category A” resorts could choose between exchanging $500 per tourist head or surrendering 20 percent of their monthly gross revenue. That framework triggered heavy pushback from resort operators at the time, but the central bank is now closing the loophole entirely.
Once the new rules pass, every resort operating in the country will have to surrender 20 percent of its monthly revenue in dollars—no exceptions. An official from the MMA said the change levels the playing field across the tourism sector. High-end luxury resorts charging thousands of dollars per night were using the $500 per head option to surrender a fraction of what standard resorts were paying relative to overall income. The MMA estimates that the current policy leaves a massive sum of foreign currency outside the domestic banking system. Switching to a blanket 20 percent requirement is expected to channel roughly $100 million extra into local banks every year.
While resorts face tighter rules, “Category B” guesthouses get a pass for now. The central bank has left guesthouse rules untouched, keeping the option to surrender either $25 per tourist or 20 percent of monthly earnings.
Non-tourism businesses that earn in dollars are getting a break under “Category C.” The MMA raised the revenue threshold that triggers mandatory dollar surrenders from $15 million to $25 million, meaning non-tourism businesses will only have to exchange forex if they cross the $25 million mark.
The central bank’s push comes as parallel market dollar rates hit historic highs, with greenbacks trading well above MVR 22 on the street. For an economy almost entirely dependent on imports, the ongoing dollar shortage continues to drive up everyday living costs across the country.
