Mandatory Exchange Portal for Tourism Sector Officially Launched

The government has introduced a mandatory exchange portal through its Internet Banking platform to facilitate foreign currency transactions for resorts, hotels, guesthouses, and other tourism-related businesses.

The initiative aims to simplify compliance with the Foreign Currency Act, which mandates USD exchanges for the sector.

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According to the Bank of Maldives (BML), the portal provides businesses with a activity report, enabling them to track and review all mandatory transactions conducted through the bank. USD will be exchanged at the bank’s selling rate of MVR 15.42.

The Foreign Currency Act, which came into effect on 1 January, categorises tourist establishments into two groups. Category A includes registered resorts, integrated tourist resorts, and private islands, which must exchange either USD 500 per tourist or 20 per cent of their monthly revenue. Category B covers registered tourist vessels, tourist hotels, and tourist guesthouses, which must exchange either USD 25 per tourist or 20 per cent of their monthly revenue.

The legislation is intended to address foreign currency shortages in the Maldives and increase the availability of USD within the banking system. BML stated that the online platform aims to streamline mandatory exchanges for tourism businesses, allowing them to manage currency transactions more efficiently while ensuring compliance with regulatory requirements.

Further details are available on the bank’s website.