President Dr. Mohamed Muizzu has ratified the Foreign Currency Bill, which was approved by the parliament on December 12, 2024. The bill introduces comprehensive regulations to manage foreign currency transactions in the Maldives and aims to standardize currency exchange practices across the country.

One of the key provisions of the bill is that all domestic transactions must be conducted in Maldivian Rufiyaa, with exceptions allowed only under specific conditions outlined in the law. It also forbids charging Maldivian nationals for services within the country in any currency other than the Rufiyaa.

The bill establishes a framework for businesses to manage foreign currency earned from sales. Under this framework, businesses are required to exchange the foreign currency with banks operating in the Maldives. These banks are then obligated to sell a certain percentage of the exchanged currency to the Maldives Monetary Authority (MMA).

For businesses in the tourism sector, the bill divides them into three categories. Category A, which includes resorts, integrated tourist resorts, private island resorts, and resort hotels, must exchange either USD 500 per tourist per month or 20 percent of their gross monthly sales. Category B, which includes tourist hotels, guest houses, and vessels, is required to exchange either USD 25 per tourist per month or 20 percent of their gross monthly sales. Category C applies to businesses outside the tourism sector with foreign currency transactions exceeding USD 15 million annually. These businesses must exchange 20 percent of their gross sales with banks.

Additionally, businesses in the tourism sector and those exceeding the USD 15 million threshold in foreign currency transactions must register with the MMA and transfer their foreign currency earnings to a local bank.

The MMA will oversee the implementation of this Act, including drafting regulations to enforce it. These regulations are expected to be finalized within two months of the Act’s ratification. The Act will be published in the Gazette and is set to take effect on January 1, 2025.