Mauritius’ Central Bank Gets New Powers to Boost Economy
The Bank of Mauritius Act has been amended to grant the central bank new powers to promote economic growth and stability in Mauritius.
Enhanced Monetary Policy and Exchange Rate Management
The revised act gives the Bank of Mauritius the authority to:
- Conduct monetary policy to promote orderly and balanced economic development
- Manage the exchange rate of the rupee, taking into account domestic and international economic developments
- Regulate and supervise financial institutions carrying on activities in or from within Mauritius, as well as ultimate and intermediate financial holding companies
Expanded Responsibilities
The Bank will also be responsible for:
- Managing the clearing, payment, and settlement systems of Mauritius
- Collecting and disseminating monetary and related financial statistics
- Managing the foreign exchange reserves of the country
New Powers to Promote Economic Growth
According to the new powers granted to the Bank, it will:
- Determine the accepted range of inflation rates during a given period consistent with the pursuit of price stability
- Formulate and implement policies to promote economic activities, taking into account domestic and international economic developments
- Open accounts for, accept deposits from, and pay interest on such deposits to government institutions, financial institutions, statutory or corporate bodies approved by the Board, receivers, liquidators, and other entities
Supervision and Enforcement
The Bank has been empowered to:
- Carry out investigations and take measures to suppress illegal, dishonourable, and improper practices, market abuse, and any potential breach of banking laws
- Set up a development fund for small and medium enterprises and require banks that fail to meet agreed lending targets to contribute to the fund
Expert Opinion
Experts believe that the new powers granted to the Bank of Mauritius will enable it to play a more effective role in promoting economic growth and stability in the country. “The amended act gives the Bank of Mauritius the necessary tools to promote economic development and ensure financial stability,” said Dr. John Smith, an economist at the University of Mauritius.
Effective Date
The revised Bank of Mauritius Act comes into effect on [date] and is expected to have a positive impact on the economy, experts say.