Currency Market Struggles Despite Bank of Mauritius Intervention

Despite Bank of Mauritius intervention, the currency market continues to face challenges caused by difficulties in obtaining currencies for import settlements, increased imports, inflation, and speculation. 

The demand for currencies peaks during the approaching festive season due to increased imports. Recent statistics show an upward trend in imports, prompting the Bank of Mauritius to intervene.

The Bank of Mauritius sold $310 million on the foreign exchange market between January and November 24, 2023. 

However, some importers claim they continue to struggle to obtain currencies. This situation has forced companies like Funny Traders Co. Ltd to cancel international orders. Despite tourism receipts, a banker told Defi Media there should have been a currency market normalisation.

While Mauritius has seen an increase in tourist arrivals and revenues, there remains an imbalance in the currency market due to factors such as speculation, inflation, and global crises, the newspaper reported.

Source: Defi Media