President: Trying to reduce USD rate to MVR 15.42 by end of 2027

President Dr. Mohamed Muizzu states efforts are underway to address the US Dollar shortage in the Maldives, with the goal of bringing the exchange rate down to MVR 15.42 by the end of 2027.

He made the remark during his appearance at ‘Dheno’ podcast, where he assured that the challenges related to the US dollar would be resolved before the end of his presidency. However, he stressed that reaching this goal would require significant measures.

A new law has been incepted as part efforts to resolve the USD shortage. In this regard, the Foreign Currency Act gives tourist establishments a choice between exchanging the fixed amount per tourist as required under the regulation or exchanging 20 percent of the monthly revenue to local banks.

It categorizes tourist establishments into two types.

Category-A tourist establishments are classified as registered resorts, integrated tourist resorts and private islands. Such establishments will need to either exchange USD 500 per tourist or 20 percent of the monthly revenue.

Category-B tourist establishments are classified as registered tourist vessels, tourist hotels and tourist guesthouses. Such establishments will need to either exchange USD 25 per tourist or 20 percent of the monthly revenue.

It also requires non-tourism businesses that generate over USD 15 million in annual USD revenue.

The President praised the cooperation of all relevant parties subject to the law, noting that the exchange of US dollars was progressing smoothly.

“Everyone is cooperative in US Dollar exchange efforts, and for that, I extend my gratitude, especially towards tourism industry owners and the private sector for their support,” he said.

President Muizzu said US Dollar rate is anticipated to drop to MVR 15.42 at the end of 2027, as the results of these measures begins to surface. 

Speaking during first episode of ‘Rayythunnaa Eku’, a podcast hosted by the President’s Office, on March 27^th, the President said USD 150 million has been remitted to local banks since January under the new foreign exchange regulations – marking a 40 percent increase from previous figures.

He expressed satisfaction with the widespread compliance with foreign exchange regulations, noting that approximately 95 percent of those required to remit dollars to banks are doing so, with efforts underway to ensure compliance from the remaining five percent.

The soaring rates of US Dollars in the black market—often exceeding USD 18.00—remain a significant public concern.

The current administration aims to abolish the US Dollar black market.