President Dr. Mohamed Muizzu has commended the decision to require the exchange of USD 500 per tourist under the Foreign Currency Exchange Bill, describing it as a significant step toward enhancing dollar circulation in the Maldives. In a social media post, President Muizzu underscored the positive impact the move would have on small and medium enterprises (SMEs) and the general public.
The legislation, spearheaded by the Maldives Monetary Authority (MMA), seeks to address the country’s longstanding foreign currency shortage. The President reaffirmed that the enforcement of this rule, initially proposed in November 2024, would help stabilize the dollar supply in the banking system. He also noted that Parliament would enact a “flex law” to support the MMA’s initiatives and ensure stricter compliance.
Under the new regulation, tourist establishments will be required to exchange USD 500 per visitor. President Muizzu emphasized that this measure could increase the overall dollar inflow, particularly if non-tourism sectors also contribute. “With enhanced dollar circulation, SMEs and the wider public stand to benefit significantly,” he stated.
Additionally, several complementary measures were highlighted. From July 2025, government-owned companies will gain access to dollars at official exchange rates, reducing reliance on the parallel market. Other plans include increasing the mandatory exchange at Velana International Airport from USD 500 to USD 1,000 per departing passenger by early 2026 and raising credit card limits in the same period. Furthermore, more dollars will be allocated to banks for telegraphic transfers (TT), easing import operations for local businesses.
President Muizzu concluded his remarks by thanking the Maldivian people for their cooperation, stressing that these initiatives are designed to benefit citizens and bolster the nation’s economy.
