Maldives Monetary Authority (MMA)'s proposed Foreign Currency Bill is set to strengthen the financial sector through enhanced data collection and analysis. Governor Ahmed Munawar spoke on the need for a revised Foreign Currency Bill during an interview on MMTV's Bodu Khabaru.

The proposed legislation builds on decades of research by previous governors and seeks to address the outdated 37-year-old monetary regulation.

Munawar explained that the bill would stipulate the generation of critical statistics, such as balance of payment data and foreign exchange market studies, which are currently based on estimates. These statistics would inform monetary policy and improve decision-making processes, he added.

The initiative also aims to reduce the reliance on informal currency markets, which have grown since the COVID-19 pandemic. Munawar highlighted the importance of formalising foreign currency exchanges through local banks to stabilise the market and return to pre-pandemic levels. He added that this would also strengthen the monetary policy in the nation.