Five months have passed since the deadline set by President Mohamed Muizzu to increase the dollar allowance for Maldivians travelling abroad to USD 1,000, yet the pledge remains unfulfilled.
Delivering the Presidential Address at the opening of the People’s Majlis last year, Muizzu announced that the current USD 500 limit for Maldivians departing from Velana International Airport would be doubled to USD 1,000 within the first quarter of this year. However, five months beyond that timeframe, the limit remains at USD 500.
Key pledges made in Muizzu’s 2025 Presidential Address included:
- Travel Allowance: Increasing the limit from $500 to $1,000 (targeted for Q1).
- Credit Card Limits: Raising limits from $750 to $1,400 (targeted for Q2).
- For Businesses: Increasing the allocation of dollars through banks for Telegraphic Transfers (TTs).
- For State-Owned Enterprises (SOEs): Establishing a mechanism by September to source dollars for SOEs without relying on the black market.
While the government did move to increase credit card limits and the dollar allocation for TTs, significant challenges persist. Users continue to face difficulties with both credit and debit card transactions abroad, and the issues surrounding the processing of TTs have intensified.
Muizzu had promised these limit increases on the premise that new foreign exchange regulations—requiring resorts to exchange USD 500 per tourist (Category A) and guesthouses USD 25 per tourist (Category B)—would yield positive results. However, instead of the anticipated relief, the black market dollar rate in the Maldives surged to unprecedented highs.
The government has since amended regulations to require resorts to exchange 40 percent of their foreign currency earnings with the Maldives Monetary Authority (MMA). Additionally, authorities are taking various measures to crack down on unlicensed currency exchange and black market operations.
The administration faces mounting public criticism for failing to implement robust austerity measures to reduce Maldivian Rufiyaa circulation as a means of stabilizing the dollar issue. Furthermore, the government has come under fire for introducing sweeping policy changes affecting the tourism industry, the nation’s primary source of income.
Muizzu has further pledged to eliminate dollar limits and resolve the difficulties faced by students abroad and businesses in accessing foreign currency, promising that dollars will be available at the official rate by 2027. The government maintains that its mandatory dollar exchange policy is the path toward achieving this goal.
