Forex bill proposes optional $500 per tourist exchange

Parliament on Monday received the new foreign exchange bill, which proposes to change the current mandatory requirement for resorts to exchange $500 per tourist optional or to enable them to exchange 20% of revenue instead.

The bill was presented by Inguraidhoo MP and PNC parliamentary group leader Ibrahim Falah on behalf of the government. It was read in parliament for the first time on Monday.

The bill includes provisions for dollar-based payments at resorts while introducing additional concessions. Exceptions to the proposed exchange include:

Tourists staying at the resort for less than 24 hours

• Children under 10 years of age
• Guests provided free accommodation at resorts
• Visitors granted special privileges by the government

Industry representatives have expressed concerns about the $500 per tourist exchange requirement required under an October regulation and earlier proposed in the forex bill, with some voicing criticism regarding its potential impact on the tourism sector.