Resorts and other businesses are not legally prohibited from paying employees in U.S. Dollars despite recent amendments to the Foreign Exchange Act, according to an official from the Maldives Monetary Authority (MMA).

The clarification follows concerns that the new rules could lead resorts to shift employee salaries from U.S. Dollars to Maldivian Rufiyaa.

The amendment, passed by Parliament on Wednesday, requires foreign currency earners, including resorts and guesthouses, to deposit 40 percent of their foreign exchange earnings through banks each month beginning on the first day of next month.

An MMA official said the revised legislation does not create any legal restriction on businesses continuing to pay salaries in U.S. Dollars.

The official said the broader transition toward conducting domestic transactions in Maldivian Rufiyaa would only take place after the implementation of necessary macroeconomic reforms and a detailed assessment of changes in the economy.

MMA Governor Ahmed Munawar outlined the central bank's longer-term vision on the 24th of this month, setting a goal of preserving the value of the Rufiyaa through 2030 while gradually reducing the use of U.S. Dollars in the domestic economy.

Under the proposed direction, the MMA aims to eventually have goods and services within the Maldives priced in Rufiyaa.

However, the governor has said major policy and management reforms would be necessary before areas such as tourism pricing could move away from the use of foreign currency.

The central bank also plans to review taxes and fees currently paid to the state in U.S. Dollars, as well as existing rules governing salary payments made in foreign currency.

The latest amendments form part of wider efforts by the authorities to increase the circulation of foreign exchange through the domestic banking system and address the country's ongoing shortage of U.S. Dollars.