President Mohamed Muizzu on Thursday expressed confidence that the new foreign exchange regulations would stabilise the currency market and ease the USD exchange rate. He said that US$150 million had been remitted to banks since January under the regulations, a 40% increase from previous levels.

There had been strong opposition from major tourism industry players when the regulations were first announced in October last year, with over 50 resorts formally rejecting their applicability. However, the government pushed through with the enactment of a new foreign currency law to provide the regulations with proper legislative footing and a framework for implementation.

Speaking on the Rayyithunnaa Eku podcast, hosted by the President’s Office, Muizzu said compliance with the regulations, formulated and implemented under the Foreign Currency Act, had significantly improved, with around 95% of those required to remit dollars now adhering to the rules. He added that efforts were ongoing to bring the remaining 5% into compliance.

Describing the regulations as “highly beneficial,” Muizzu said it would strengthen the financial system, drive national progress, and benefit all citizens.

The president also announced measures to improve access to foreign exchange, including raising the bank rate allocation for travellers from US$500 to US$1,000, doubling credit card limits, and expanding Telegraphic Transfer (TT) options.

Muizzu said he was confident the dollar exchange rate would decline as the regulation took full effect, reducing reliance on the black market for foreign currency purchases, particularly by state-owned enterprises.

However, while Muizzu makes these claims, the black market exchange rate has surged past MVR 19 per US dollar—a level rarely seen before his administration. Critics have questioned the president’s figures, asking where the remitted dollars have gone if the black market rate remains high and banks have yet to ease USD policies.

The Maldives’ tourism-driven economy has faced persistent foreign exchange shortages, prompting tighter regulations to channel remittances through official banking channels. Muizzu said the expanding tourism sector continued to generate revenue that contributed to economic stability and benefited citizens.