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HomeWorldFinancial crisis deepens in Maldives, Muizzu government bans purchases of foreign currency - Top News Bulletin

Financial crisis deepens in Maldives, Muizzu government bans purchases of foreign currency – Top News Bulletin


Male: Neighboring country Maldives is in deep financial crisis after messing with India. However, in the meantime, Maldivian President Mohammad Muizzu has come to New Delhi and met PM Modi and started the initiative to control damage and improve relations with India. Despite this, the crisis in Maldives is not showing signs of abating. Therefore, now Maldives, which is facing dollar crisis, has implemented a new foreign exchange regulation. Under this, the types of transactions in foreign currency have been limited and mandatory foreign exchange controls have been imposed on tourism establishments and banks.

Let us tell you that in response to President Mohammed Muizzu's 'India Out' campaign last year, Maldives' economy has suffered a blow after calling on Indian tourists to stay away from this beautiful island country. Last month, Maldives was saved from a possible default on Islamic bond payments as India gave it an interest-free loan of $50 million. Due to foreign exchange reserves not matching import bills, the Maldives' central bank, the Maldives Monetary Authority (MMA), introduced a new regulation on October 1, requiring all foreign exchange earnings generated by the tourism industry to be deposited in local banks. will be.

What are the restrictions in Maldives?

The MMA, which imposed a strict dollar limit due to a dollar shortage in the Maldives in August, published the new rules in the local Dhivehi language. According to the Foreign Exchange Regulation (Regulation No.: 2024/R-91), all transactions within the Maldives must be made in Maldivian Rufiyaa (MVR), except those that are explicitly permitted in foreign currency . As per the new regulation and FAQ issued by MMA, it also provides that the price of goods and services, works, fees, charges, rent and wages shall be paid in local currency and bills for these transactions shall be issued in foreign currency. A ban has been imposed. (Language)

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