The Parliament’s Public Accounts Committee today approved an amendment to the Foreign Exchange Act that would prohibit the publication of black market exchange rates that exceed the official rates set by the Maldives Monetary Authority (MMA).
The committee passed the measure during a meeting held to further review the Foreign Exchange Bill after it was recommitted for additional study.
Under the proposed amendment, any legal entity or registered business found publishing black market dollar rates could face fines ranging from MVR 100,000 to MVR 5 million.
Furthermore, promoting or advertising foreign currency transactions at rates or bands higher than those set by the central bank will be deemed a criminal offense. This violation carries a penalty of a fine between MVR 25,000 and MVR 500,000.
In addition to these changes, a clause has been included to prohibit the sale of dollars above the official rate. The committee decided to propose amendments stipulating that all foreign exchange transactions must adhere to MMA-mandated rates, with violations subject to fines between MVR 25,000 and MVR 1 million.
The move to silence media reporting on exchange rates through the Foreign Exchange Act follows statements by Economic Minister Mohamed Saeed, who suggested that news reports contribute to the rising price of the dollar. These restrictive measures were not included in the original version of the bill submitted by the government.
The government initially proposed amending the foreign exchange laws to replace the current discretionary requirement of exchanging USD 500 per tourist at resorts with a mandatory requirement to exchange 20 percent of total gross revenue.
Despite the tightening of regulations, the bill includes certain concessions, such as allowing the exchange of foreign currency through installment plans.
Additionally, the government has proposed easing requirements for businesses in other sectors. The administration now aims to raise the annual foreign currency revenue threshold from USD 15 million to USD 25 million while granting the MMA the authority to provide further concessions to 100 percent Maldivian-owned businesses regarding exchange requirements.
