The recently ratified Foreign Exchange Act is expected to play a significant role in stabilising commodity prices and improving access to foreign currency, according to President Dr Mohamed Muizzu. 

Speaking at the first session of the People's Majlis for 2025, the President highlighted the importance of addressing long-standing issues in the foreign exchange market for the benefit of the state and its citizens.

Over the past year, key measures have been implemented to strengthen the country's foreign exchange system. Among these, the introduction of the foreign exchange law stands out as a crucial step towards ensuring better market regulation and economic stability. The President noted that the law’s impact would be reflected in the state’s financial reserves in the near future.

Key changes introduced under the law include:

These measures aim to improve the enforcement of foreign exchange regulations and increase the circulation of dollars within the banking system. The policy is also expected to encourage businesses in the tourism sector and other foreign revenue-generating industries to deposit more foreign currency into local banks, thereby enhancing the availability of dollars for commercial and personal use. This, in turn, is projected to stabilise prices by maintaining consistent exchange rates.

The President also reported an optimistic economic outlook, projecting a 6.4 per cent growth rate for 2025. Since taking office, foreign exchange reserves have improved, reaching USD 673.2 million in 2024—a 14 per cent increase from the previous year.

The Foreign Exchange Act, implemented on January 1 of this year, was designed to establish a regulatory framework for foreign currency transactions, including import, export, deposit, and marketing of foreign currency within the Maldives. The latest amendments seek to strengthen the existing system, ensuring a more stable and efficient foreign exchange market.