Muizzu Announces Reforms to Currency Exchange
President Dr. Mohamed Muizzu announced that the government would introduce measures to ensure international payments are processed exclusively through commercial banks.
The move, which aims to strengthen the Maldives’ economy, was revealed during the People’s National Congress (PNC) assembly, last night.
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During his speech, Muizzu stated that amendments to the Maldives Monetary Authority’s (MMA) monetary regulations would be implemented to mandate businesses earning foreign currency to exchange it through banks rather than relying on black market transactions.
“This change will compel businesses that generate income in foreign currencies to use banks for exchanges, reducing reliance on informal and unregulated markets,” he said. The president also indicated that the Foreign Direct Investment and Business Profit Tax (BPT) regulations would be amended to incentivise foreign investments to remain within the local banking system.
“This will encourage US dollar retention in the Maldives for longer periods, benefitting the economy,” Muizzu added.
He further explained that these reforms would ensure currency exchangers are directly linked with banks, which would regularly monitor their activities to prevent illicit exchanges.
In addition to these economic reforms, President Muizzu made strong accusations regarding recent events involving the Bank of Maldives (BML). He described the bank’s decision on Sunday to temporarily suspend foreign transactions on Maldivian Rufiyaa debit and credit cards as an attempted coup.
The president, addressing a rally at the PNC camp, supported similar claims made by Fisheries Minister Ahmed Shiyam, who alleged that BML’s actions were part of a conspiracy by the opposition Maldivian Democratic Party (MDP).
The police have since launched an investigation into the matter, with President Muizzu asserting that there is reason to believe the actions surrounding the BML decision were an effort to destabilise the government.
“This was a planned incident, and the police have already begun investigating it,” said the president, adding that he believed the dots connected to form a clear attempt to undermine his administration. “We will take every constitutional measure necessary to address this situation with full authority.”
The investigation remains ongoing, with further updates expected from the authorities.
