The Minister of Economic Development and Trade, Mohamed Saeed, has hailed the surge in US dollar deposits in Maldivian banks as a major milestone, following the implementation of the Foreign Exchange Act earlier this year.

According to official figures, MVR 2.3 billion (approximately USD 150 million) has been deposited in banks since the Act came into force, marking a 40 percent increase compared to the same period last year.

Speaking at a press conference held at the President’s Office, Minister Saeed attributed this achievement to a series of policy measures introduced to curb the black market for foreign currency. He emphasised that these steps are already showing promising results and will continue to have a positive impact on the formal economy.

The Minister also cited insights from the Maldives Monetary Authority (MMA), which has noted that the black market rate for dollars is expected to decline significantly. As a result, the informal currency market is anticipated to weaken further in the coming months, reinforcing the dominance of regulated financial channels.

In addition to cracking down on parallel markets, the Government is actively working to boost dollar inflows through export growth. Minister Saeed highlighted that foreign exchange earnings from exports during January and February 2025 rose by 11 percent compared to the same period last year. This growth has been driven in part by a notable increase in fish exports, a key contributor to the country’s export profile.

Moreover, ordinary citizens, including students and individuals travelling for Umrah, have reportedly found it easier to access foreign currency through official banking channels, a shift that Minister Saeed described as a positive early outcome of the reforms.

The Government believes these changes will contribute to broader economic prosperity, especially for the general public and small and medium-sized enterprises (SMEs), by improving access to foreign currency and reducing dependence on unofficial sources.

To support this objective, the following policy measures are set to be implemented:

From July 2025, Government-owned companies will be allowed to obtain dollars at the official rate without resorting to the parallel market.

The passenger departure levy at Velana International Airport will be increased from USD 500 to USD 1,000 in the first quarter of 2026.

Credit card limits will be revised upwards during the same period.

The proportion of dollars allocated to banks for making Telegraphic Transfers (TTs) will be increased, particularly for local businesses importing goods.

The Foreign Exchange Act, which was gazetted on 14 December 2024, officially came into effect on 1 January 2025. Under the new regulations:

Category A resorts are mandated to deposit either USD 500 per tourist or 20 percent of their monthly income.

Category B entities, including safaris, guesthouses, and hotels, must deposit USD 25 per tourist or 20 percent of their monthly income.

Non-tourism businesses are required to deposit and exchange foreign currency only if their annual revenues exceed USD 15 million.