Businesses in the Maldives will be banned from selling their US dollars on the currency black market, President Mohamed Muizzu has said.
There has traditionally been extremely low enforcement regarding the issue, with the Maldives Monetary Authority (MMA) continuing to receive consistent criticism over the rampant exchange of foreign currencies at higher than official rates in the black market.
Speaking during a rally at the People’s National Congress (PNC) party headquarters on Monday night, Muizzu said the administration’s proposed changes to the foreign exchange rules will effectively end the black market.
“The amendments to the Money Changers Regulation will put an end to the black market exchanges and make it mandatory to exchange through the banks [the regulated financial system]. Many will be angry with us. However, I will side with the people on this,” Muizzu said.
The Cabinet, on Sunday, decided to amend the law with a view to increase the state’s US dollar reserves.
At a press conference after the Cabinet meeting, Attorney General Ahmed Usham said the law would be amended to require companies earning in US dollars to pay taxes, such as corporate income tax and import tax, in US dollars.