The law mandating tourist businesses to exchange $500 per tourist head officially came into effect today. 

The Foreign Currency Bill, introduced in Parliament on December 9, 2024, was passed during the 60th sitting of the third parliamentary session on December 12, 2024, and received presidential approval from President Dr. Muizzu on December 14, 2024.

The legislation requires all domestic transactions to be conducted exclusively in Maldivian Rufiyaa, with exceptions allowed only under specific legal circumstances. 

Under this law, businesses operating within the Maldives must exchange foreign currency obtained from their sales through local banks. 

These banks, in turn, are obligated to sell a designated percentage of the exchanged funds to the Maldives Monetary Authority (MMA).

Initially, the bill mandated tourism businesses to exchange USD 500 per tourist head with banks operating in the Maldives. 

However, the final version of the law revised the rule to require businesses to exchange only 20% of the income derived from the USD 500 per tourist head figure. 

This amendment was introduced to address concerns raised by industry stakeholders, allowing for greater flexibility.

Tourism industry leaders had expressed concerns over the fixed USD exchange requirement, citing it as unfair to establishments catering to diverse market segments. 

They pointed out that the original rule failed to consider factors such as room rates, duration of guest stays, guest demographics, and special promotional offers. 

Additionally, many argued that a significant portion of operational expenses is paid in USD, making the requirement particularly burdensome.

- Charging Maldivian nationals for any services provided or acquired within the Maldives in any currency other than the Rufiyaa is forbidden.

- Foreign currency earning businesses earning USD 20 million per annum shall deposit their foreign exchange earnings into a Maldives bank account.

- Conversion of tourist hotels (located on an island with more or less than 50 inhabitants) and tourist vessels to Category B.

- Individuals with income of at least USD 20 million per annum will be required to mark not more than 25% of their foreign currency income under a regulation made by the Authority.

- Foreign currency exemptions include tourists who spend less than 24 hours, children under the age of 18 and free or complementary stays.

- In addition, tourist vehicles registered outside Maldives are exempted from the law.

President Dr. Mohamed Muizzu, on the coming of the Foreign Currency Law stated that this will bring dollar prosperity to the general public and businessmen. 

President Dr. Muizzu also stated that the law will bring more positive changes to the people and businesses of Maldives.

1. From July 2025, government-owned companies will be able to receive dollars at the official rate without going to the parallel market.

2. In the first quarter of 2026, the USD 500 per Maldivian passenger departing from Velana International Airport will be doubled to USD 1,000.

3. In the first quarter of 2026, increase credit card limits.

4. From July 2025, the proportion of dollars allocated to banks for importing goods will be increased.