President Mohamed Muizzu has reaffirmed his commitment to the Maldives Monetary Authority’s (MMA) controversial foreign exchange rules, dismissing widespread opposition from resort operators and business leaders. Speaking at an event marking the first anniversary of his presidency on Sunday night, President Muizzu declared that the rules, set to take effect on 1 January 2025, would not be amended.
“We are not going to change this rule. We will not change it. We have made it very clear that we will not change it,” the President said during the ceremony held at the Social Centre in Malé.
The rules, introduced on 1 October by the MMA, mandate tourist facilities to exchange a specified amount of dollars for Maldivian Rufiyaa (MVR) at local banks—US$500 per tourist for resorts and US$25 per tourist for guesthouses. The policy aims to bolster the domestic banking system’s foreign currency reserves.
However, the regulation has drawn sharp criticism from industry leaders, with over 50 resorts formally rejecting its applicability. Prominent figures, including Mohamed Moosa of Crown & Champa Resorts and Mohamed Umar Maniku of Universal Group, have described the mandate as unworkable and detrimental to resort operations, which heavily rely on USD revenue to cover expenses such as payroll, supplier payments, and government taxes.
New Forex Act to Support Implementation
President Muizzu insisted that the policy aligns with constitutional provisions and announced plans to table draft Forex legislation in Parliament to provide a legal framework for the regulation.
“This is in accordance with the Constitution, and Forex legislation will be introduced in Parliament to give legal authority to this,” he said.
Escalating Tensions with Industry Leaders
The President’s remarks follow earlier statements in which he indirectly criticised leading hoteliers, accusing some of prioritising political interests over the nation’s welfare. In a post on X, formerly known as Twitter, on Thursday, President Muizzu wrote, “Leaders who do not want any good to come to the people will become very clear in the future.”
While he did not name individuals, his comments were widely interpreted as a rebuke to influential industry figures opposing the new regulation.
Industry Pushback and Uncertainty
Industry leaders argue that the regulation disregards the operational realities of resorts and threatens their financial stability. They maintain that the mandatory dollar exchange could disrupt business operations, ultimately harming the tourism sector and its contributions to the national economy.
