Maldives Implements New Currency Exchange Rules Amid Economic Challenges

Maldives introduces new foreign currency regulations due to economic strain. The rules limit foreign currency transactions and enforce mandatory exchanges within the tourism sector. The Maldives is tackling foreign debt and a currency shortage, largely influenced by the 'India Out' campaign. Non-compliance could result in hefty fines.

Amid mounting economic concerns, the Maldives has unveiled stringent foreign currency regulations aimed at stabilizing the island nation's fiscal landscape. The new rules limit transactions conducted in foreign currencies and mandate that tourism operators deposit their earnings in local banks.

The changes come as the Maldivian economy grapples with significant foreign debt, with recent efforts to avert a potential default on an Islamic bond payment through a USD 50 million loan from India. This move follows last year's 'India Out' campaign, which has impacted tourist arrivals and revenue.

The Maldives Monetary Authority (MMA) published these new rules, requiring most transactions to occur in Maldivian Rufiyaa, except for certain exports and international dealings. Non-compliance with the regulations could result in fines of up to MVR 1 million.

(With inputs from agencies.)