Mauritius to provide foreign currency support to exporters
(Ecofin Agency) - Mauritius will provide foreign currency support to its export-oriented sectors, in order to cushion them against the impact of a strong rupee. According to Reuters which reported the news, the country will provide advantages exporters with some advantages, in regards to the rupee/dollar exchange rate. This is in response to a call from the exporters after export revenues slumped by 8% year-to-year in the first half of 2017, to stand at 20.5 billion rupees.
Though it did not specify how much it could inject in the operation, the government however said the move would be based on the gap between dollar exchange rate used by exporters and a reference rate of 34.5 rupees for a dollar. In details, Mauritius will set a maximum support of 2.5 rupees per dollar starting Monday Sept. 11.
Still under the scheme, sugar producers will be provided a support of 1,250 rupees per ton of the commodity. Meanwhile, the Central Banks of Mauritius announced last week the reduction of its key repo rates by 50 basis points.
Since the beginning of this year, the Mauritian rupee’s value rose by 9% to the dollar, but weakened 5% against the Euro.