Will the government take action then?

Minister Sithanen firmly said he would not interfere because he wants to favour the stability of the currency. He agrees with the Bank of Mauritius which has always recommended to let the market determine the value of the rupee even though he acknowledges the need to maintain a balance between holding back inflation and keeping the competitiveness of exports. The Finance minister said the authorities would react only if the corrections are too high ? in which case it will be the ?authorities? duty to interfere?.

Why are some economic stakeholders complaining about the valuation of the currency?

The companies involved in the export sector are afraid that their takings will drop. The vice-president of the Mauritius Export Association (MEXA), Ahmed Parkar, has already warned that the manufacturing sector could suffer from a crisis if the authorities do not take any action to review the exchange rate. For him, the value of the rupee does not correspond to the reality but has been supported by high interest rates.

What led to the sudden appreciation of the rupee after long months of constant depreciation?

According to the minister of Finance, Rama Sithanen, the valuation of the local currency is due to the positive performance of the economy over the last few weeks. ?We are harvesting the benefits of the reform. The economy is doing very well. Our currency reflects the fundamentals of the economy.?