The Maldives Monetary Authority (MMA) has proposed increasing the proportion of foreign currency earnings that resorts must convert through local banks from 20 percent to 40 percent as part of wider efforts to strengthen dollar availability within the banking system.

MMA Governor Ahmed Munawar announced the proposed changes during a press conference at the President's Office, attended by three Cabinet ministers.

He said preparations are underway to submit amendments to the Foreign Exchange Act to the People's Majlis.

The proposed reforms would also shorten the period allowed for converting tourism-related foreign currency earnings.

The current timeframe of three months would be reduced to one month, requiring more frequent and faster conversion of foreign currency into the domestic banking system.

The MMA is also planning to strengthen oversight of how businesses use the remaining foreign currency after completing the mandatory conversion requirement.

The measure is intended to prevent foreign currency earned through tourism and other activities from being diverted into the black market.

Munawar said the proposed changes are part of broader efforts to address the country's long-standing foreign currency shortage and improve the circulation of dollars through formal banking channels.

The announcement comes amid continued pressure on the foreign exchange market, with the MMA seeking to increase liquidity available for essential transactions, including telegraphic transfers and other business-related payments.