Black Market Dollar Trade Weakens as Regulated Exchange Rises, Says Economic Minister

The Minister of Economic Development and Trade, Mohamed Saeed, has stated that the black market for US dollar exchange in the Maldives has begun to weaken, citing improvements in regulated currency exchange.

Speaking at a press conference held at the President’s Office on Monday, 22 April, Minister Saeed said local businesses had exchanged USD 150 million (MVR 2.3 billion) through commercial banks between January and March 2025. He described this as a significant increase in formal currency exchange channels.

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Saeed also echoed earlier remarks made by President Dr Mohamed Muizzu during a podcast appearance, noting a 40 percent rise in regulated foreign currency transactions since the introduction of new measures.

The Minister attributed this shift to recent regulations implemented by the Maldives Monetary Authority (MMA) in October 2024. Under the revised foreign exchange rules, tourist resorts are required to exchange USD 500 per tourist, while guesthouses must exchange USD 25 per tourist with local banks.

To reinforce these regulations, the government submitted a supporting bill to Parliament on 9 December 2024. In addition to mandatory exchange rates per tourist, the bill allowed resorts to exchange 20 percent of their retained monthly revenue. The legislation also introduced flexibility, enabling financially constrained resorts to exchange below the 20 percent threshold, and extended the same 20 percent retained revenue option to guesthouses.

The bill was passed by Parliament on 12 December and ratified by President Muizzu two days later.

In his appearance on the Rayyithunnaa Eku podcast, President Muizzu said that 95 percent of businesses were now complying with the new exchange rules. He highlighted the broader aims of the policy, which include boosting tourism revenue and increasing access to foreign currency for Maldivian travellers and businesses.

According to the President, the improved regulation will allow outbound travellers to purchase up to USD 1,000 at the bank rate, double the current credit limits, and expand opportunities for businesses to make telegraphic transfers (TT) through official banking channels.