The Maldives Monetary Authority (MMA) has identified two resorts that have failed to comply with the mandatory foreign currency exchange requirements under the country’s foreign exchange regulations.
The MMA said Rahaa Resort in Laamu Atoll and South Palm Resort Maldives in Addu Atoll have not conducted any foreign currency exchanges as required. Rahaa Resort is operated by MO Hotels and Resorts.
The central bank has called on all businesses covered by the Foreign Exchange Act to comply with the required currency exchange rules. Businesses that have not yet registered with the MMA are also being given opportunities to complete their registration and meet the necessary requirements.
According to the MMA’s latest compliance report, 78 percent of resorts have fully complied with the dollar exchange requirements, while 20 percent have not met the requirements adequately.
Among Category B establishments, which include guesthouses, hotels and safari vessels, 48 percent have complied with the requirements. Another 15 percent have not exchanged the required amount, while 37 percent have not exchanged any dollars.
For Category C businesses with annual revenues exceeding USD 15 million, 38 percent have complied with the requirements, while 33 percent have not exchanged the required amount adequately and 29 percent have not exchanged any dollars.
The MMA said it is providing additional opportunities and awareness programmes for smaller businesses to improve compliance. However, changes requested by larger businesses would require amendments to the Foreign Exchange Act.
Under the law, the MMA retains 90 percent of exchanged dollars, with 30 percent of this amount redistributed to banks, prioritising locally owned Maldivian banks. The funds are used to support essential foreign exchange needs, food imports and the foreign currency requirements of small and medium-sized businesses.
The authority said foreign currency exchanged by resorts ultimately benefits businesses and the public by helping strengthen reserves and finance essential imports, including fuel, gas and medicines.
