Foreign Exchange Amendment Ratified, 40% Resort Conversion Requirement to Take Effect September 1 

President Dr Mohamed Muizzu has ratified amendments to the Foreign Exchange Act introducing a 40 per cent foreign currency conversion requirement for Category A tourism establishments and tighter restrictions on foreign currency trading.

The bill was passed by the 20th People’s Majlis during its 28th sitting of the second session of 2026 on Wednesday, August 26, before being ratified by the President at a ceremony at the President’s Office today. The amendment will come into force on September 1, 2026.

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Under the amended law, Category A tourism establishments must convert 40 per cent of their monthly gross sales through banks, with the previous option to convert USD 500 per tourist removed. 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 annual foreign currency income threshold triggering the conversion requirement has been raised from USD 15 million to USD 25 million. Businesses exceeding the new threshold must convert 40 per cent of their monthly gross sales through a bank, while 100 per cent Maldivian-owned businesses are subject to a seven per cent conversion requirement.

Amounts subject to conversion must be deposited into a foreign currency account at an MMA-licensed bank and converted through the bank by the 28th day of the following month.

The amendment also restricts the buying and selling of foreign currency to rates or rate bands determined by the Maldives Monetary Authority (MMA), with foreign currency exchange businesses required to operate under an MMA licence.

Selling, attempting to sell or advertising foreign currency at rates above those determined by the MMA will constitute a criminal offence under the amended law. Individuals can face fines ranging from MVR 25,000 to MVR 1 million, while legal persons can be fined between MVR 100,000 and MVR 5 million.

The changes have drawn criticism from the opposition Maldivian Democratic Party (MDP) and tourism industry stakeholders, including the Tourism Employees Association of Maldives (TEAM) and the Maldives Association of Tourism Industry (MATI).

TEAM has launched a campaign opposing the conversion of resort employees’ salaries and service charges from US dollars to Maldivian rufiyaa. The union said employees from 42 resorts had signed its petition within the first day of the campaign.

The campaign comes amid broader concerns from tourism stakeholders over the increased foreign currency conversion requirement.

MATI has warned that the 40 per cent requirement could place additional financial pressure on resort operators, noting that resorts continue to have significant expenses payable in US dollars, including fuel, salaries, service charges, taxes, lease payments and foreign loan obligations.

The government has maintained that the foreign exchange measures are intended to increase the availability of US dollars in the domestic market and improve circulation of foreign currency within the Maldivian economy.