Mauritius is currently grappling with a shortage of foreign currencies in its banking system, impacting businesses, importers, and investors who rely on USD, EUR, and other major international currencies. This crisis stems from several interwoven factors, including a persistent trade imbalance, declining foreign exchange inflows from key sectors like tourism and exports, and increasing capital outflows. The depreciation of the Mauritian rupee, coupled with tighter financial regulations and reduced foreign direct investment (FDI), has further exacerbated the situation.
The COVID-19 pandemic dealt a severe blow to tourism, once a primary source of foreign currency, while global economic uncertainties and geopolitical tensions have discouraged investment inflows. Additionally, speculative behaviors, such as hoarding foreign currencies and reliance on black-market forex transactions, have further strained liquidity in the banking system.
Addressing this challenge requires strategic policy interventions to enhance export competitiveness, attract FDI, and implement effective foreign exchange regulations. Without such measures, Mauritius risks prolonged economic instability and reduced investor confidence in its financial sector.
