MALE: The Dollar-hungry Maldives has proposed a new foreign currency legislation that would impose strict controls on foreign currency exchange at tourist attractions and lenders.
In response to President Mohamed Muizzu’s” India Out” campaign next year, calls to American tourists to avoid the lovely island nation appear to have taken a hit to the Maldivian economy.
After India extended a USD 50 million interest-free product last month, the Island avoided a potential definition on an Islamist relationship pay.
The island nation’s central bank, Maldives Monetary Authority ( MMA ), issued a new regulation on October 1 that mandates that all foreign currency income generated by the tourism sector be deposited in local banks because its forex reserves are insufficient to meet its import bill. The new regulations were published in the local Dhivehi speech following a strict dollars cap in August when Island found itself in a money shortage.
All transactions conducted within Maldives must be made in Maldivian Rufiyaa ( MVR ), excluding those that are specifically permitted in foreign currency, according to the Foreign Currency Regulation ( Regulation No: 2024/R-91 ).
According to the new rules and Question released by MMA, it also mandates that goods and services get paid for in local currency as well as value for money, fees, charges, rent and wages, and are not subject to invoicing for these transactions.
Payment made in US dollars are excluded from the list of transactions that are legally required to be completed, such as global exports, payment services providers, and others. According to the regulations, all realized sales of hotels, resorts, and other accommodations must be deposited into a foreign exchange bill held in a Maldives-licensed bank.
Additionally, every tourist resort, tourist vessel, and tourist establishment operator must, among other things, exchange at least USD 500 for MVR per tourist ( through a Maldives-licensed bank ), the proceeds of which can be used by the tourist operator for their operations.
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