Africa-Press – Mauritius. Government has implemented several bold measures to increase the inflow of foreign currency in the country and one of the key measures is the re-opening of borders in October 2021 to boost the local economy.
The Minister of Finance, Economic Planning and Development, Dr Renganaden Padayachy, made this statement, today at the National Assembly, in reply to the Private Notice Question on the ongoing fall in the exchange rate of the Rupee vis à vis the US dollar and ensuing scarcity of this currency in commercial banks.
Other measures enumerated by the Finance Minister are: promoting Mauritius as a business facilitation hub through delisting of Mauritius on the Financial Action Task Force, European Union, and United Kingdom list; contract of concessional loans in terms of foreign currency; subventions of Rs 8.2 billion on essential commodities; and the opening of economic activities for foreign investors and expatriates amongst others.
Dr Padayachy recalled that the COVID-19 pandemic has significantly impacted the global economy adding that the Russia – Ukraine war has further worsened the situation.
These crises have contributed to a decline in the country’s economic activities, a depreciation of the Rupee, a drop in foreign exchange earnings, and an increase in inflation.
Mauritius, he said, has recorded a deficit of some 122 billion in inflow of foreign currency for the period 2020 to 2022, and the Finance Minister attributed it mainly to a considerable decrease in earnings from tourism, export and financial services.
As regards measures undertaken by the Bank of Mauritius (BOM) to ensure smooth flow of foreign currency, he indicated that since the outbreak of the pandemic in March 2020 up to now, the BOM has sold some 2.9 billion USD.
He added as part of its endeavour to facilitate economic transactions, the BOM sold 25 million US dollar at the rate of Rs 43,15 against 43,25 in its last intervention on the domestic foreign exchange market.
Minister Padayachy also underlined that a budget of Rs 48 billion was allocated in 2014 under the Welfare State and presently the amount has doubled to more than Rs 93 billion.
This, he said shows the commitment of the Government to work unremittingly despite the pandemic and the recession to contribute to the Mauritian economy and the welfare of the population.
The Finance Minister underlined that inflation could be higher than around 6.6 % rate, but Government is working on measures to maintain the level of purchasing power of consumers and protect the population from the impacts of the ongoing global crises.
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