Local businesses have expressed concern over Maldives Ports Limited (MPL) continuing to charge stevedoring fees in US dollars for vessels docking at its ports, even as the government and the Maldives Monetary Authority (MMA) push to mandate Maldivian Rufiyaa for all domestic financial transactions.
The requirement to pay stevedoring fees in dollars was introduced in April 2024, following the inauguration of President Mohamed Muizzu’s administration. Prior to this change by the MPL, businesses had been paying these fees in Rufiyaa.
"Stevedoring is a local service that also attracts GST. While there is a push to conduct all domestic transactions in Maldivian Rufiyaa, we do not believe MPL should be allowed to charge dollars for a local service. At the time, MPL failed to provide any justifiable reason for such a sudden change," a local agent told Adhadhu.
The mandate to pay in dollars has forced importers to settle their bills with agents in foreign currency. This has caused losses for local businesses, as they are compelled to source dollars at inflated rates.
"This change intensified the pressure on the dollar market. When more people entered the market to source dollars, the impact was immediate. Now, imagine how many customers are forced into the black market daily to find dollars. Thousands of shipments are cleared every month. This does nothing but further strain the black market," said a businessman who spoke to Adhadhu on condition of anonymity.
At the time of the policy change, the then-CEO of MPL alleged that shipping agents were already collecting fees in dollars and selling them at high rates on the black market. MPL stated then that the move was intended to curb the supply of dollars to the black market.
However, shipping agents who spoke to Adhadhu denied these claims. One agent stated that such fees were never collected in dollars before MPL implemented the change.
"That was a blatant lie by the then-CEO. No shipping agent in the Maldives commonly charged in dollars before this regulation. Fees like freight were collected in Maldivian Rufiyaa with a surcharge. Those funds were not something agents could just manipulate at will. Furthermore, this move only worsened the black market situation; the dollar rate, which was at 17, climbed to 18 and 19 following this change," the businessman said.
The former CEO also justified the change by stating that MPL required dollars to purchase equipment from abroad.
"If that is the logic, then State-Owned Enterprises (SOEs) like STO should also charge in dollars. Those SOEs require far more dollars to procure essential goods and supplies," the businessman countered.
Under foreign exchange regulations, all financial transactions within the Maldives must be conducted in Maldivian Rufiyaa, except under specific authorised circumstances. Businesses and agents argue that MPL’s policy, implemented without such justification, is an unnecessary burden on the private sector.
"This regulation was enacted by MPL based on false information regarding shipping agents and served a different agenda," a freight forwarder told Adhadhu.
Following the implementation of the policy, the Maldives Trade Association (MTA) also called for the decision to be reversed. The association’s concern remains the inability of businesses to source sufficient dollars through the formal banking system.
