11 June 2010, Bank of Mauritius
As part of an on -going dialogue with real sector stakeholders, a meeting was held today at the Bank of Mauritius with the President, Vice President and the Secretary General of the Mauritius Chamber of Commerce and Industry (MCCI) under the chairmanship of the Governor.
Representatives of the MCCI, which is a multi-sectoral organization, expressed concerns on the adverse impact of the Euro crisis on key sectors of the Mauritian economy through both a decline in demand and revenue. While being in favour of stability in the exchange rate of the rupee, representatives of the MCCI observed that recent volatility in the rupee exchange rate does not create conditions for an enabling business environment for operators.
The Governor reassured representatives of MCCI that the Bank is closely monitoring the situation on the international and domestic foreign exchange markets. He reiterated that the current weakness of the Euro on the international foreign exchange market reflects the negative market perception of the macroeconomic fundamentals of the Euro zone. He stated that our current exchange rate regime has performed well against the backdrop of the global financial crisis.
In view of the risks for a prolonged slowdown of growth in our main export markets, the Governor reiterated the need for our export enterprises to re-engineer their operations with a view to enhancing productivity and diversifying markets.
The Bank remains committed to its mandate of maintaining price stability as well as to promoting orderly and balanced economic development. In the conduct of its exchange rate policy, the Bank has to take into account the national interest of the country. The Bank, however, stands ready to accompany the adjustment of certain sectors through tailor-made measures.
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