President Dr Mohamed Muizzu has stated that USD 116 million has been exchanged under the Foreign Currency Act as of the end of February, describing the figure as a positive indicator of the country’s economic performance. 

The Act, which came into force on 1 January 2025, was introduced as part of measures to strengthen foreign currency management and stabilise the Maldivian Rufiyaa.

Speaking at a press briefing on Monday, the President said the economy is performing strongly with no cause for concern, expressing confidence that economic conditions will continue to improve in the coming months.

The Foreign Currency Act was introduced in efforts to address foreign currency shortages and stabilise the value of the Maldivian Rufiyaa. Under the Act, all transactions, unless explicitly exempted, must be conducted in Maldivian Rufiyaa. The law also requires businesses generating foreign exchange revenues of USD 15 million or more annually to register their income with designated banks in the Maldives. Proceeds from goods and services sold must be deposited into local bank accounts, with the Government stating that the initiative is aimed at strengthening foreign reserve buffers and supporting macroeconomic stability.

Furthermore, the President also announced that the Government will release MVR 200 million to small businesses and companies within the coming week. He said priority will be given to projects valued at less than MVR 1 million, as part of efforts to support micro, small and medium enterprises.

President Dr Muizzu stated that additional measures are being undertaken to further strengthen liquidity and maintain economic stability while ensuring continued support for domestic businesses.