Bank of Mauritius Injects USD 25 Million to Stabilize Rupee

Since February 2025, the Bank of Mauritius has injected USD 25 million into the foreign exchange market to reduce the rupee’s volatility. These interventions have helped the rupee strengthen by 3.8% against the US dollar, despite a decline relative to the euro and the British pound.

The 74th Monetary Policy Committee (MPC) meeting was held on Wednesday, May 7, 2025, at the Bank of Mauritius.

During the meeting, the bank reviewed actions taken since February, emphasizing its strategy to stabilize the monetary and foreign exchange markets.

Between February and April 2025, the bank intervened with USD 25 million to curb fluctuations in the rupee’s exchange rate.

According to Governor Rama Sithanen, the rupee continues to move based on traditional supply and demand factors, as well as developments in foreign currencies.

Governor Sithanen explained that measures implemented to improve the domestic foreign exchange market have contributed to a 3.8% appreciation of the rupee against the dollar from February 4 to April 29.

This trend has helped ease some inflation pressures, although the rupee has weakened against the euro and the pound.

Overall, the broad exchange rate index improved by 1.6%, dropping from 129.5 in December 2024 to 127.5 in April 2025.

Regarding liquidity, the central bank continued its open market operations.

Since February, it has issued treasury bills worth Rs 2.5 billion, primarily focusing on 91-day bills.

Weekly auctions of 7-day bills at the policy rate were maintained until mid-March, with Rs 1 billion issued each week.

These measures are part of ongoing efforts to ensure effective transmission of monetary policy decisions.

Source: Defi Media