President Mohamed Muizzu has defended the government's latest measures targeting the tourism sector and money exchange businesses, as the administration moves to curb the freefall of the Maldivian Rufiyaa and control the surging dollar rate.
The government yesterday mandated that resorts must exchange 40 percent of their foreign currency earnings through local banks. Additionally, the administration announced a ban on the unauthorized exchange of foreign currency by those earning in dollars, warning of strict penalties for violators.
Speaking on the President’s Office’s "Nation Chat" program regarding these measures, Muizzu expressed confidence that his policies would lead to overall economic improvement.
"The steps we are taking regarding foreign exchange will undoubtedly yield positive results. While some may criticize these moves for political reasons, I believe that, God willing, the overall outcome will be beneficial," Muizzu said.
He noted that the measures taken so far to address the foreign exchange crisis followed consultations, adding that the door remains open for further dialogue.
"We will continue to seek solutions through a consultative approach with everyone's participation. This is everyone's country. Therefore, God willing, the results will be positive," he added.
Despite the President's remarks, the decision to mandate the conversion of 40 percent of resort revenue was made against the advice of industry stakeholders and the President's own Tourism Advisor, Mohamed Khaleel. The advisor resigned from his post in protest of the decision.
"As these policies are causing harm to the tourism sector, I no longer see the purpose of remaining as an advisor to the government," Khaleel said in an interview with Adhadhu.
In a statement released Monday, the Maldives Association of Tourism Industry (MATI) argued that mandating the exchange of 40 percent of total revenue is unsustainable, given that salaries, rent, TGST, fuel bills, Green Tax, and loan repayments are all settled in foreign currency.
