Pres: Online transaction difficulties will be resolved as resorts exchange more USD

President Dr. Mohamed Muizzu, on Monday, assured that the difficulties currently experienced by the public when conducting online transactions will eventually be addressed through the foreign currency generated by the mandatory conversion of 40 percent of resort dollar earnings through local banks.

The administration initially required resorts to convert 20 percent of their total dollar revenue. However, on August 26th, Parliament, where the ruling PNC holds a supermajority, approved an amendment raising the mandatory conversion requirement to 40 percent. The President subsequently ratified the amendment last Monday.

The measure has raised concerns among some industry stakeholders and opposition figures, who have argued that requiring resorts to convert such a substantial share of their dollar earnings is not a sustainable approach.

As the government proceeds with measures aimed at increasing the circulation of US dollars within the domestic economy, the Bank of Maldives (BML) has repeatedly stated that the demand for foreign currency it is required to supply remains higher than the amount it receives.

As a result, the bank decided in May to facilitate transactions on popular e-commerce platforms such as Temu and Shein within a fixed daily allocation determined by the bank. Since the introduction of the measure, complaints on social media over difficulties in making online purchases have increased.

During a press conference held at the President’s Office earlier today, Sun asked the President when a solution to the issue could be expected. In response, the President said that the legislative amendments were specifically introduced to address such challenges.

"These changes are being introduced to rectify those issues. God willing, this will be achieved as soon as possible through the implementation of these laws," the President said.

The President acknowledged that he was aware of public complaints regarding difficulties with online shopping, but stressed that such changes cannot be implemented immediately.

He reiterated that the reforms being introduced by the government would ultimately resolve the issue in the future.