Government’s Forex Bill Clears Committee Stage

The Public Accounts Committee of the Parliament has endorsed the government-proposed Foreign Currency Bill (Forex Bill), which aims to mitigate the foreign currency shortage currently affecting the country. The bill, drafted by the Maldives Monetary Authority (MMA) with input from all relevant stakeholders, was presented by Parliamentarian Ibrahim Falah, on behalf of the government.

Under the proposed legislation, all tourist resorts operating in the Maldives are required to exchange USD 500 for each tourist staying at their facilities through a registered bank in the Maldives. Alternatively, they may opt to exchange 20 percent of their total foreign currency revenue, according to the bill. Other tourism facilities, including guesthouses and safari vessels, are mandated under the bill to exchange USD 25 or 20 percent of their foreign currency revenue each month through a local bank.

The bill was debated on Tuesday and subsequently sent to the Public Accounts Committee for review. The committee, which held its meetings behind closed doors, has since passed the bill with some amendments.

Parliamentarian Ahmed Azaan Marzooq told PSM News that minor amendments were made by the committee, including raising the age limit for children exempt from the bill from 10 to 12 years. Tourist resorts facing financial difficulties are now permitted to lower the percentage of foreign income that must be exchanged at local banks, subject to review by the central bank, he added.

The passage of the Forex Bill at the committee stage comes at a time when lawmakers have been actively advocating for solutions to the foreign currency shortage affecting the Maldives.