All government receipts to be accepted in Maldivian Rufiyaa

The Cabinet has today decided to stop accepting any monetary receipts to the government in any currency other than the Maldivian Rufiyaa. Hence, all payments of fees and other dues to the government shall be accepted in Maldivian Rufiyaa.

The President’s Office told today that the decision was arrived at after deliberation in the Cabinet, as a measure against inflation and shortage of US Dollars in the Maldives.

According to the President’s Office, the decision was taken with the view to strengthen the position of the Maldives’ legal tender too.

However, the decision would go into implementation only after a series of necessary administrative and legal preliminary matters are settled. The President’s Office said that certain adjustments needed to be made, and that the Cabinet decision would come into action as soon as they are made.

Speaking about the Cabinet decision, Minister of Finance Ahmed Inaz said that it would increase the demand for Maldivian currency. “The government needs to stop conducting internal monetary transactions in foreign currencies. It is necessary in order to push the value of our currency up. This decision will contribute exactly to that. If parties have to make payments due to the government in Maldivian Rufiyaa, they would have to sell foreign currency and buy local legal tender to make the payments, thus increasing its demand”, Inaz said.

Finance Minister Inza also said that the Attorney General’s Office had already commenced the task of revising the existing body of laws and regulations and identifying which of them needed to be changed in order to make room for the implementation of the Cabinet decision.