Forex Exchange Rules Will Ease Dollar Shortage: President Muizzu

Mandatory foreign exchange conversion into domestic banks by the tourism industry and other commercial sectors will bolster state reserves, provide significant relief to the national dollar shortage, and ease parallel market pressures, President Dr. Mohamed Muizzu said today.

Responding to a query regarding the foreign currency crunch during a press conference held at the President's Office, President Muizzu stated that the government is undertaking concerted measures across multiple fronts to resolve the issue. He noted that authorities are actively facilitating foreign currency inflows into the Maldives through international investor-led real estate developments and broader economic initiatives.

"Through this change requiring the tourism sector and other entities to exchange foreign currency, alongside these measures, we will make substantial progress in resolving this issue. Concurrently, we will begin seeing results in mitigating and curbing the black market," the President said.

President Muizzu further highlighted that the new foreign currency conversion framework would significantly strengthen the nation's foreign reserves. He expressed confidence that ongoing government efforts would yield positive, tangible outcomes in establishing a permanent solution to the ongoing dollar shortage facing the economy.