Banks Maintain Cash Reserve Ratio at 9% Boosting Excess Cash Holdings

Bank cash balances have been boosted by an increase in cash reserves, according to figures from the Bank of Mauritius.

The figures show that the average 28-day Cash Reserve Ratio (CRR) for both Mauritian rupee and foreign currency deposits now stands at 9%, up from the previous rate.

The result is that required minimum cash balances have increased, helping to improve bank performance during the three-month period ending 5 October 2023.

The figures also reveal an increase in excess cash holdings, which have helped to further improve profits for banks.

The increase in required cash balances is partially offset by increased liquidity requirements, which have been introduced to ensure stability in the banking sector.

Meanwhile, on November 08, the Bank of Mauritius intervened on the domestic foreign exchange market and sold a total amount of USD25.0 million at the rate of Rs44.20/USD.

The Central Bank also revealed that the Gross Official International Reserves (GOIR) of the country amounted to Rs297.0 billion (equivalent to USD6,688.1 million) as at end-October 2023. Based on the imports of goods and services for calendar year 2022, the GOIR represented 10.0 months of imports as at end-October 2023.