MMA Instructs Enterprises to Budget and Seek Approval Prior to Paying Bills in USD

The Maldives Monetary Authority (MMA) has mandated that enterprises submit projected annual foreign currency expenditures 30 days prior to each calendar year and obtain official approval before settling bills in US dollars.

This mandate was established following the newly gazetted General Foreign Exchange Regulation. The requirement forms part of a broader regulatory framework published alongside the Regulation on Registration under the Foreign Exchange Act.

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The new registration rules mandate that non-tourism entities earning USD 25 million or more in annual foreign exchange revenue register directly with the central bank. The regulations also outline administrative procedures for requesting reviews of mandatory exchange figures and applying for relief regarding deposit and conversion obligations, with all measures taking effect immediately.

These regulatory enactments operationalise recent revisions to the primary legislation, which impose updated exchange mandates across commercial sectors:

• Category A (Resorts, Resort Hotels, and Integrated Tourist Resorts): Establishments in this tier are now required to exchange 40% of foreign currency earnings. The previously permitted conversion option of USD 500 per tourist has been officially eliminated.
• Category B (Guesthouses and Tourist Hotels): Operators must convert either 20% of foreign currency earnings or USD 25 per tourist.
• Category C (Non-Tourism USD-Earning Enterprises): Standard commercial entities falling within this tier face a 40% exchange rate. However, a reduced conversion requirement of 7% applies specifically to 100% Maldivian-owned enterprises.