Maldives Monetary Authority (MMA) Governor Ahmed Munawar has said the country's shortage of U.S. Dollars(USD) could be addressed by requiring domestic transactions to be conducted exclusively in Maldivian Rufiyaa, provided that key macroeconomic conditions are properly maintained.

Munawar shared his view on social media while commenting on a report featuring former MMA Governor Ali Hashim, who had argued that resolving the country's foreign currency shortage would require decisive action by the government.

According to Munawar, a transition toward a Rufiyaa-only system for domestic transactions could help reduce pressure on the foreign exchange market if supported by sound fiscal, monetary, and broader economic policies.

Economic experts have similarly highlighted that reducing the Maldives' dependence on the USD would require wider reforms, including stronger fiscal discipline, reduced recurrent expenditure, better management of excess Rufiyaa liquidity, and an increase in foreign exchange reserves.

Strengthening requirements for major foreign currency earners, particularly tourism businesses, to bring their earnings into the domestic banking system has also been identified as an important part of addressing the shortage.

U.S. Dollars continue to be widely used for various transactions within the Maldives, including some salary payments, transport services, and general business activities.

The country's heavy reliance on imported goods has further contributed to strong demand for foreign currency.

The issue has become increasingly significant as the black market exchange rate for the USD has recently approached MVR 23.

The Foreign Currency Act already requires tourism establishments to convert part of their foreign currency earnings through local banks.

The MMA has also proposed amendments requiring resorts to convert 20 percent of their total foreign currency revenue.

Meanwhile, Parliament is reviewing additional amendments that could impose fines of up to MVR 1 million for illegal foreign currency trading and up to MVR 500,000 for publicly advertising or reporting black market exchange rates.