A senior advisor to President Dr Mohamed Muizzu has joined the expanding chorus of protests against the Maldives Monetary Authority’s (MMA) newly implemented foreign exchange regulation, calling it “practically impossible” to meet. Mohamed Khaleel, the President’s Advisor on Tourism Development and Managing Director of Pulse Hotels & Resorts, highlighted the severe operational and financial challenges posed by the regulation in a letter addressed to MMA Governor Ahmed Munawar.
The policy, which came into effect on 1 October, requires “A” category resorts to exchange at least US$500 per guest into Maldivian Rufiyaa (MVR). This is part of a broader regulation that mandates the deposit of foreign currency earnings in Maldivian banks, replacing a 37-year-old foreign exchange policy. Resorts were given until 30 October to register under this new regulation. However, Khaleel’s letter, sent on 13 November, highlights mounting opposition within the tourism industry, which has expressed concerns that the policy could destabilise businesses reliant on USD revenue.
In his letter, Khaleel argued that nearly all USD revenue generated by Pulse Hotels & Resorts is allocated to essential expenses, including payments to suppliers, employee payroll, loan repayments, and government tax obligations. He warned that the US$500 exchange requirement would put “unsustainable” pressure on their financial operations and increase the risk to both liquidity and contractual commitments.
This latest formal objection from Khaleel follows similar letters sent by other major industry players, including prominent tourism figures Mohamed Moosa, Chairman of Crown & Champa Resorts, and Mohamed Umar Maniku of Universal Group. Both have criticised the regulation as “arbitrary” and “unfeasible.” Moosa, in particular, described the rule as a one-size-fits-all solution that fails to consider resorts’ differing financial structures and warned of “disastrous domino effects” that could lead to investor hesitation.
Industry insiders report that over 50 resorts have formally objected to the policy, describing it as a detached approach to the economic realities of the Maldivian tourism sector. Despite the growing backlash, the government has not publicly responded to the tourism industry’s concerns, leaving resort operators uncertain about the regulation’s future and its potential impacts on the industry.
