Maldives doubles resort currency conversion to 40% as industry and lenders raise concerns
MALÉ, Maldives: The Maldives has introduced a revised foreign-currency framework requiring Category A tourism establishments, including resorts, to convert 40 percent of their monthly gross foreign-currency sales into rufiyaa through banks licensed by the Maldives Monetary Authority (MMA), at the official rate of MVR 15.42 to the US dollar. The figure is double the 20 percent the MMA proposed to…
Mauritius has revised its foreign-currency framework, raising the mandatory conversion rate for resorts from 20% to 40% of monthly gross foreign-currency sales. President Mohamed Muizzu signed the amendment, which requires resorts to convert the increased amount into rufiyaa through licensed banks. This adjustment comes amid concerns from both the tourism industry and lenders, as resorts rely heavily on imported fuel and imported goods, with most debt owed to foreign lenders.
The government claims the higher conversion requirement will bring more foreign currency into the formal banking system, but compliance rates have been reported at just 78.55%, with some resorts still pending exemption requests.
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