Summary
Foreign exchange in the Maldives is governed by the Foreign Currency Act (32/2024), in force since 1 January 2025, and MMA Regulation 2024/R-91, effective October 2024. In August 2026 the regime escalated sharply: a first licence revocation, a bill criminalising parallel-market activity, and an announced doubling of the resort conversion mandate to 40 percent.
Why it matters
These rules decide how much of every tourism dollar Resorts must surrender at MVR 15.42, how fast, and under what penalties. They are the main transmission channel from the Dollar Shortage to the Tourism Industry’s cash flow, and the source of the inconvertibility risk lenders now price into Maldives loans.
Current situation
On 20 August 2026 the Maldives Monetary Authority revoked the Tier 1 licence of Express Money Exchange, the first named enforcement action, without publishing grounds or customer redress. On 23 August the Majlis Finance Committee’s version of the FX bill proposed fines of MVR 25,000 to 1m for individuals selling above the MMA rate, up to MVR 500,000 for advertising or repeating a rate, and MVR 100,000 to 5m for businesses; the advertising clause covers forwarding a message quoting the street rate. On 24 August the Governor announced the conversion mandate for resorts would double from 20 to 40 percent of gross sales, compliance monthly instead of quarterly, with 100 percent the stated goal. MATI’s consistent position is that any mandate should not exceed 10 percent; between the 20 percent proposal and its doubling, the industry had weeks.
Key data
| Indicator | Value | As of | Trend |
|---|---|---|---|
| Resort conversion requirement | 20% of gross sales (or USD 500/tourist) | Aug 2026, in force | 40% announced 24 Aug |
| Guesthouse/safari requirement | USD 25 per tourist | Aug 2026 | Unchanged |
| Proposed individual fines | MVR 25,000 to 1m | Committee stage, Aug 2026 | Not yet law |
| Proposed business fines | MVR 100,000 to 5m | Committee stage, Aug 2026 | Not yet law |
| Licences revoked | 1 (Express Money Exchange) | 20 Aug 2026 | Enforcement continuing |
| Resort compliance average | 78.55% | Oct 2024 to Apr 2026 | Published 23 Aug |
Drivers
- Reserve depletion and the state’s need to capture tourism dollars for debt service.
- A 49 percent gap between the peg and the street rate that rules alone cannot close.
- Political pressure to be seen acting, with allegations against unnamed resort operators used to justify sector-wide measures.
Impact
Critics, including the MMA Governor in his own remarks on “macro fundamentals”, argue enforcement cannot substitute for supply: a fined market moves underground, and compelled conversion pushes resorts back into the parallel market as buyers. Roughly one in five under-converting resorts has an exemption request the MMA itself has not decided. For investors the regime raises FX Risk and compliance cost, with penalties for unconverted amounts starting at 0.25 percent and licence suspension after 90 days unpaid.
Related topics
- Foreign Exchange
- Dollar Shortage
- Maldives Monetary Authority
- Peoples Majlis
- FX Risk
- Tourism Industry