As the Administration marks two years in office, one of the most consequential economic reforms has been the introduction of the Foreign Currency Bill, which aims to ensure that foreign currency generated through tourism and other sectors directly benefits the wider Maldivian public rather than being transferred overseas without contributing adequately to the domestic financial system.

Ratified on 12 December 2024 and implemented on 1 January 2025, the Foreign Currency Bill establishes a regulatory framework requiring businesses operating under Maldivian law to exchange foreign currency from realised sales proceeds through domestic banks. These banks are then mandated to sell a specific proportion of the exchanged earnings to the Maldives Monetary Authority (MMA), ensuring that a greater share of foreign currency remains within the national economy.

Although several private sector stakeholders initially opposed the measure and attempted to avoid compliance, President Dr Muizzu reiterated that he would not revoke or amend the new regulations and urged all relevant parties to adhere to the law.

Within three months of implementation, President Dr Muizzu revealed on the President’s Office podcast Rayyithunnaa Eku that deposits of USD 150 million had been remitted to Maldivian banks, reflecting a 40 per cent increase compared to previous levels.

The impact of the legislation appears evident in national reserve data, with Maldives official reserves increasing by 98.5 per cent since the Administration took office in November 2023. Official reserves rose from USD 581.2 million to USD 859.5 million by September 2025, while usable reserves increased from USD 97.9 million to USD 194.4 million during the same period.

President Dr Muizzu has also expressed confidence that the Maldives longstanding US dollar shortage could be resolved by 2027, allowing residents to access foreign currency at official bank rates. The Foreign Currency Bill is playing a major role in supporting this objective and strengthening the country’s foreign currency position.