Maldives, which is facing dollar crisis, has implemented a new foreign exchange regulation. Under this, the types of transactions in foreign currency have been limited and mandatory foreign exchange controls have been imposed on tourism establishments and banks. The Maldives' economy has taken a hit after President Mohammed Muizzu called on Indian tourists to stay away from the beautiful island nation in response to the 'India Out' campaign last year.
Last month, Maldives was saved from a possible default on Islamic bond payments as India gave it an interest-free loan of $50 million.
Due to foreign exchange reserves not matching import bills, the Maldives' central bank, the Maldives Monetary Authority (MMA), introduced a new regulation on October 1, requiring all foreign exchange earnings generated by the tourism industry to be deposited in local banks. will be.
The MMA, which imposed a strict dollar limit due to a dollar shortage in the Maldives in August, published the new rules in the local Dhivehi language. According to the Foreign Exchange Regulation (Regulation No.: 2024/R-91), all transactions within the Maldives must be made in Maldivian Rufiyaa (MVR), except those that are explicitly permitted in foreign currency .
As per the new regulation and FAQ issued by MMA, it also provides that the price of goods and services, works, fees, charges, rent and wages shall be paid in local currency and bills for these transactions shall be issued in foreign currency. A ban has been imposed. Exempt transactions include exports, international transactions, payments to remittance service providers and transactions that are legally required to be settled in US dollars.
