Changes Made to the Policy of Foreign Currency Sales to MMA by Banks Under the Foreign Currency Act

The Maldives Monetary Authority (MMA), the central bank of Maldives, has made changes to the policy regarding the sale of foreign currency to MMA by banks under the Foreign Currency Act. The MMA has issued a press release regarding these changes.

According to the press release issued by MMA, it has been decided to increase the percentage of foreign currency that banks must sell to the Authority under Article 13(a) of Law No. 32/2024 (Foreign Currency Act), effective from June 1, 2025.

Under the Foreign Currency Act, banks are required to sell a percentage, as determined by the Authority, of the foreign currency they receive from entities earning foreign currency income. As such, the Authority has decided to increase the percentage of foreign currency that banks must sell weekly from 60% to 90%, effective from June 1, 2025.

This change has been implemented to enable banks to more effectively provide foreign currency needed by businesses through the foreign currency sold to banks by the Authority each week. According to MMA, the aim is to further strengthen the availability of foreign currency for the country's economic activities and reduce business difficulties.