Abdulla Yameen urges resorts to defy new forex conversion law

Former President Abdulla Yameen has called on resort operators in the Maldives to oppose a new legislative requirement to convert 40 percent of their foreign currency revenue into local banks. Speaking at a People’s National Front town hall meeting in Fuvahmulah, Yameen argued that the mandate imposes an unbearable burden on the tourism sector, as operators need foreign exchange to settle overseas development loans, supply logistics, and other operational expenses.

The requirement follows an amendment to the Foreign Exchange Act passed by Parliament, which increased the mandatory conversion rate from previous levels and removed the option to convert a fixed USD 500 per tourist arrival. The Maldives Association of Tourism Industry (MATI) has previously expressed concerns, suggesting that conversion rates exceeding 10 percent of total revenue would not be viable for the industry.

Ruling party members have condemned Yameen’s remarks. PNC Parliamentary Group Leader Ibrahim Falah accused the former president of inciting illegal acts and encouraging businesses to disregard the law. Falah further alleged that Yameen is working in collusion with the opposition Maldivian Democratic Party (MDP) to undermine President Mohamed Muizzu’s administration.