Maldives Monetary Authority to Launch Foreign Currency Exchange Company to Strengthen Regulatory Oversight

The Maldives Monetary Authority (MMA) has unveiled plans to establish a dedicated foreign currency exchange company aimed at improving oversight and management within the country’s currency exchange market. The announcement follows recent amendments to regulations governing currency exchange, marking a significant step in updating policies first implemented in 1987.

During a segment aired on PSM News, MMA's Assistant Executive Director, Aishath Asnaa, shared that nearly 200 parties currently hold permits to operate in currency exchange, and these regulations will now be tightened to establish designated areas for currency exchange activities. Under the new guidelines, a single, specialized company will facilitate exchange services for better monitoring and compliance.

All entities involved in money exchange must obtain a valid licence, including a new requirement for applicants to maintain a deposit of USD 50,000. The revised regulations categorize licences into two types: one allowing both buying and selling of foreign currency, and the other restricted to selling only. Notably, tourism facilities are exempt from the licencing requirement.

The MMA has also mandated all existing licensees to reapply and register under the new framework by the end of this month, a move intended to ensure that all currency exchange operators adhere to the updated regulatory standards.

These regulatory enhancements are part of MMA's ongoing efforts to streamline and modernize the currency exchange system, promoting a more robust framework for currency management in the Maldives.