The Maldives Monetary Authority (MMA) has announced that approximately USD 40 million in foreign currency revenue from Maldivian resorts' October earnings will be converted to banks this month.

Of the 175 resorts operating in the Maldives, 138 have registered under the new regulation, according to a central bank official. The remaining 37 resorts have yet to convert their funds ahead of the January 28, 2024, deadline.

The mandatory conversion regulation, which came into effect on October 1, 2024, requires resorts to convert USD 500 per tourist and guesthouses USD 25 per tourist to local banks.

Tourism Ministry statistics reveal that 172,621 tourists visited the Maldives in October, with 70 per cent choosing to stay at resorts.

The broader Foreign Currency Act, implemented on January 1 this year, mandates all tourism sector operators and other foreign currency earners to convert specified amounts to banks. The initial regulation specifically targeted conversions based on tourist occupancy during the last quarter of the previous year.

The new framework aims to strengthen the country's foreign currency reserves and stabilise the banking sector through systematic conversion of tourism earnings.