Maldives Monetary Authority (MMA) has revealed that tourism businesses are projected to deposit between USD 30 million and USD 40 million into local banks following the implementation of the Foreign Currency Act. 

This new legislation, which came into effect on January 1, mandates that tourist establishments and select businesses exchange a portion of their USD earnings through Maldivian banks.

The Foreign Currency Act, approved by the President on December 14 last year, aims to address the nation's foreign exchange challenges.

It categorizes tourism businesses into two groups with distinct requirements. 

Category A establishments, including registered resorts, integrated tourist resorts, and private islands, must exchange either USD 500 per tourist or 20% of their monthly revenue. 

Meanwhile, Category B, covering registered tourist vessels, tourist hotels, and guesthouses, is required to exchange USD 25 per tourist or 20% of their monthly revenue.

According to the MMA, 138 of the 175 operational resorts in the country have submitted their October sales reports, with the remaining 37 yet to comply. 

The deadline for resorts to meet the exchange requirements is set for January 28.

In October last year, the Maldives welcomed 172,621 tourists, contributing significantly to the country’s foreign currency flow. 

President Dr. Mohamed Muizzu expressed optimism about the new regulations, stating they will alleviate the problem of obtaining US Dollars and extend benefits to state-owned enterprises as well.