President Mohamed Muizzu said today that requiring resorts to convert 40 percent of their foreign currency earnings into Maldivian Rufiyaa will not pose a challenge to any resort operator.
Speaking after ratifying amendments to the Foreign Exchange Act, Muizzu asserted that he is certain resorts have the capacity to exchange 40 percent of their foreign income without facing any difficulties.
"I would like to respectfully state that we know with certainty that exchanging 40 percent will not be a burden for resorts. Converting this amount will not hinder their ability to repay loans taken for resort development, pay staff salaries, or cover operational expenses. This is certain," he said.
Muizzu further noted that some resorts currently hold excess dollars, which are being exchanged at inflated rates on the black market. He argued that such sales on the parallel market only occur because these entities possess surplus foreign currency.
"We see it in the news and learn through other means that some parties are exchanging dollars at high rates on the black market. This only happens when there is excess currency available. Furthermore, the financial data clearly shows that exchanging 40 percent is not something that would trouble any resort," he added.
During the ceremony, the President emphasized that increasing the mandatory foreign currency conversion requirement would directly benefit the general public.
"The direct benefit to the citizens is that by increasing the conversion requirement from 20 percent to 40 percent, we can utilize those funds to facilitate payments for imported goods, Telegraphic Transfers (TTs), and for the procurement of essential commodities," he said.
