New foreign currency rules set in Maldives

Dollar-starved has floated a new foreign currency regulation, limiting types of transactions allowed in foreign currency and imposing mandatory foreign currency exchange controls on tourism establishments and banks. Maldivian economy appears to have taken a hit after calls to to avoid the picturesque island nation as a response to President Mohamed Muizzu’s ‘India Out’ campaign last year. Maldives last month averted a potential default on an Islamic bond payment after India extended a USD 50 million interest-free loan.

With its forex reserves not matching its import bill, the island nation’s , Maldives Monetary Authority (MMA) on October 1 introduced a new regulation, requiring all foreign currency income generated by the tourism industry to be deposited in local banks. The MMA published the new rules in the local Dhivehi language..