362 Million USD Converted to Local Banks Under Maldives Foreign Currency Regulation in First Half of 2025

The Maldives Monetary Authority (MMA) announced that 362 million US dollars have been converted to local banks by tourism businesses during the first six months of 2025, following the implementation of the Foreign Currency Act earlier this year.

The Act, effective from January 2025, mandates that tourism sector businesses convert a specified amount of foreign currency earnings to local banks. Under the regulation, resorts and tourism operators must convert either $500 per tourist or 20% of their monthly income by the 28th day of the third month following each month’s end.

MMA revealed that 60% of the converted foreign currency has been sold to the MMA by banks, in line with the foreign currency regulations. Banks are required to sell 90% of converted dollars to the central bank.

Exemptions to the conversion rule apply to guests staying less than 24 hours, children under 10 years, complimentary guests, and government special privilege guests.

According to MMA, 50% of the dollars converted to the authority are allocated for government expenditure and reserve strengthening, while an additional 40% is sold back to banks every week.