MMA calls on businesses to fulfil foreign currency conversion obligations

The Maldives Monetary Authority (MMA) has reminded businesses subject to mandatory foreign currency conversion requirements to meet their legal obligations, warning that the names of entities that miss the prescribed deadline will be disclosed.

In a press release issued on 26 October, the authority cited Section 10(e) of the Foreign Currency Act, which requires entities to complete the conversion of foreign currency income received during a calendar month before the 28th day of the following month.

MMA urged all entities to fulfil their conversion obligations within the stipulated timeframe.

It said the names of those that fail to comply would be disclosed in accordance with policies established by the authority.

The reminder follows changes to the foreign currency framework under the first amendment to the Foreign Currency Act, ratified by President Dr Mohamed Muizzu on 31 August 2026.

The amendment took effect on 1 September.

According to the President’s Office, Category A Tourism establishments must convert 40 per cent of their monthly gross sales into Maldivian rufiyaa.

The amendment removed the previous option of converting USD 500 per tourist.

Category B tourism establishments must convert either USD 25 per tourist arrival or 20 per cent of their monthly gross sales.

For businesses outside the tourism sector, the amendment raised the annual foreign currency income threshold triggering mandatory conversion from USD 15 million to USD 25 million.

Businesses above that threshold must convert 40 per cent of their monthly gross sales, while those that are wholly Maldivian-owned must convert seven percent.

Amounts subject to conversion must be deposited into a foreign currency account maintained with an MMA-licensed bank and converted through the bank, the President’s Office said.