Connect with us

News

Do we have enough forex? Opposition and importers uneasy about reserves

Published

on

Do we have enough forex? Opposition and importers uneasy about reserves

Opposition Leader Xavier-Luc Duval has accused the Minister of Finance Dr Renganaden Padayachy of lying on the balance sheet of the Bank of Mauritius and “that there would be no shortage of foreign currency”.

Commercial banks are operating according to a priority list before granting foreign currency, he claimed. “This leads to the conclusion that Renganaden Padayachy is not up to the job, to face the challenges that await the country”.

Duval also described the Bank of Mauritius as being “extremely vulnerable” to any fluctuation of the dollar.

“Any unfavourable movement could wipe off its reserves and its capital. Mismanagement and squandering of the BoM can lead to a situation like in Sri Lanka,” he warned.

“It is impossible for the Bank of Mauritius to appreciate the value of the rupee. If it does, she will go bankrupt,” he pointed out.

Duval spoke of a bank that refused to transfer 12,000 dollars to Singapore. “If foreigners can no longer transfer their money, it will be harmful and extremely dangerous for our offshore,” he said.

Importers join the fray

Despite his assurances in Parliament, Minister of Finance Renganaden Padayachy has come under fire again, this time by importers. They have also deplored they are having difficulties to buy FX to pay for their products.

Anand Ajoodha, director of Funny Traders Co. Ltd, a leading importer of rice and other commodities said he has no choice but to limit imports – which could impact the availability of some products in the market.

Similar criticisms came from Zaid Ameer, president of the Imported Vehicles Dealers Association, who described suppliers as being “angry.”

“We are unable to pay our suppliers because we not be given enough US dollars for the transactions.”

Bookmark (0)

No account yet? Register

Spread the News
The information and opinions expressed in our published works are those of authors/sources believed to be reliable. NewsMoris makes no representations as to accuracy, completeness, suitability, or validity of any information expressed.
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

The information and opinions expressed in our published works are those of authors/sources believed to be reliable. NewsMoris makes no representations as to accuracy, completeness, suitability, or validity of any information expressed.