Rs180 Billion Injected: PM Unveils Rupee Anti-Depreciation Measures

Facing a concerning economic situation marked by the rupee’s depreciation and persistent inflation, Prime Minister Navin Ramgoolam on Tuesday, July 15, explained the specific steps his government is taking to stabilize the economy and restore financial stability.

He revealed that the Bank of Mauritius (BOM) has issued strict new rules for banks. From now on, all foreign currency transactions must be conducted only through licensed institutions approved by the BOM.

This aims to prevent illegal markets that could worsen the rupee’s decline. Ramgoolam emphasized that banks must carry out transactions fairly.

The BOM will work closely and regularly with banks to ensure these rules are followed and that operations remain transparent.

On the monetary front, the Prime Minister recalled an already implemented measure: raising the Key Rate from 4% to 4.5% in February 2025.

In addition to monetary actions, the government has introduced several budgetary measures announced in the 2025/26 Budget to boost the economy and ease the cost of living.

These include lowering fuel prices, implementing targeted prices on essential goods, and removing VAT on certain basic food items.

Ramgoolam also criticized the previous government’s economic management, calling it “monetary illusion.”

He pointed out that the earlier government relied heavily on printing money to finance the budget deficit, which contributed to the rupee’s depreciation.

He stated that “Rs 180 billion was injected into the banking system to fund government spending.”

The Prime Minister reaffirmed his commitment to working tirelessly with his government to improve the country’s economic situation.

Source: Le Mauricien