Former Maldivian President Mohamed Nasheed has warned that mandating resort operators to exchange 40 percent of their US dollar revenue with the central bank or local commercial banks poses a severe threat to investor trust and the long-term stability of the tourism industry.
His remarks follow an announcement by Maldives Monetary Authority (MMA) Governor Ahmed Munawwar regarding proposed amendments to foreign exchange laws amid ongoing dollar shortages in the country. Under the planned changes, resort operators would be legally required to surrender a substantial portion of their foreign currency earnings to domestic financial institutions.
Posting on social media platform X, Nasheed stressed that forcing resorts to surrender such a high percentage of their foreign revenue could lead to unintended, adverse economic consequences. He highlighted that a significant number of Maldivian resort properties were financed through international financial institutions and carry substantial debt service obligations that must be repaid strictly in US dollars.
Nasheed added that foreign investors originally chose to capital-fund projects in the Maldivian tourism sector due to its competitive and reliable returns. He cautioned that taking away these financial incentives risks undermining investor confidence and eroding the foundational stability of the nation's most vital economic sector.
