BANK OF MAURITIUS – MEXA – FOREIGN CURRENCIES
(No. B/546)
Mr E. Guimbeau (First Member for Curepipe &Midlands) asked the
vice-Prime Minister, Minister of Finance and Economic Development whether, in regard to the
Mauritian exporters, he will, for the benefit of the House, obtain from the Bank of Mauritius,
information as to if the Bank will consider buying foreign currencies directly therefrom so that
they can benefit from finer margins and thus  become more competitive and viable and as a
means of providing additional support thereto to cope with the current global crisis affecting the
markets and currencies.
The vice-Prime Minister, Minister of Finance and Economic Development (Mr X. L.
Duval): Mr Deputy Speaker, Sir, I am informed by the Bank of Mauritius, that since January
2008, the Bank of Mauritius has had several discussions with the Mauritian Exporters Association
(MEXA), at their request, for the direct sale of foreign currency to the Bank. Regarding this issue,
the Bank had issued three communiqués dated 29 January 2008, 01 December 2008 and 24 May 2010 on this matter.
Amongst others, the Bank had stated that it would stand ready to accompany
the adjustment of export-oriented sectors through targeted measures.
As regards the issue of finer margins on foreign currency transactions, I am informed that
with the 20 commercial banks and 10 money changers and 6 foreign exchange dealers there is
already competition in the market.  This is exerting a downward pressure on the margins.   The
Bank of Mauritius is closely monitoring the situation.
Mr Guimbeau: Mr Speaker, Sir, can the hon. Minister inform the House whether the
Bank of Mauritius have powers under the Bank of Mauritius Act to direct banks to compress
margins and regulate maximum margins, which can be applied between buying and selling rate
of different currencies?
Mr Duval: Mr Deputy Speaker, Sir, I think the Bank of Mauritius has wide powers to set
rates, etc. Anyway they have the powers, I think.
Mr Guimbeau: We must be sure, Mr Deputy Speaker, Sir, if not we have to amend.
(Interruptions)
M.le président, notre secteur d’exportation est  en grande difficulté. Est-ce que le
gouvernement va continuer à subir le dictat des banques ou bien laisser la banque de Maurice
acheter le devise directement avec les exportateurs afin d’économiser sur les marges des banques
intermédiaires ?
Mr Duval:  Mr Deputy Speaker, Sir, I think the right answer to this is to have the
appropriate exchange rate that is not misaligned and that is what we are doing. I do not think, Mr
Deputy Speaker, Sir, that the  Bank of Mauritius should suddenly replace the whole banking
sector and we would end up with only one bank in Mauritius, the Bank of Mauritius. That is not
appropriate and neither is it appropriate that we should have two-tier systems for exchange rates.
I think one exchange rate for everybody that is the solution, but an appropriately aligned
exchange rate.
Mr Guimbeau: I agree with the hon. Minister but it is the duty of the Bank of Mauritius
to see to it that Commercial Banks act and be fair to all customers. I think that is the duty of a
bank and the Governor of the Bank of Mauritius, Mr Speaker, Sir.
Sitting of tuesday 17th July 2012
(No. B/546)
Mr E. Guimbeau (First Member for Curepipe &Midlands) asked the vice-Prime Minister, Minister of Finance and Economic Development whether, in regard to the Mauritian exporters, he will, for the benefit of the House, obtain from the Bank of Mauritius, information as to if the Bank will consider buying foreign currencies directly therefrom so that
they can benefit from finer margins and thus  become more competitive and viable and as a means of providing additional support thereto to cope with the current global crisis affecting the
markets and currencies.
The vice-Prime Minister, Minister of Finance and Economic Development (Mr X. L. Duval): Mr Deputy Speaker, Sir, I am informed by the Bank of Mauritius, that since January 2008, the Bank of Mauritius has had several discussions with the Mauritian Exporters Association (MEXA), at their request, for the direct sale of foreign currency to the Bank. Regarding this issue, the Bank had issued three communiqués dated 29 January 2008, 01 December 2008 and 24 May
2010 on this matter. Amongst others, the Bank had stated that it would stand ready to accompany the adjustment of export-oriented sectors through targeted measures.
As regards the issue of finer margins on foreign currency transactions, I am informed that with the 20 commercial banks and 10 money changers and 6 foreign exchange dealers there is already competition in the market.  This is exerting a downward pressure on the margins.   The Bank of Mauritius is closely monitoring the situation.
Mr Guimbeau: Mr Speaker, Sir, can the hon. Minister inform the House whether the Bank of Mauritius have powers under the Bank of Mauritius Act to direct banks to compress margins and regulate maximum margins, which can be applied between buying and selling rate of different currencies?
Mr Duval: Mr Deputy Speaker, Sir, I think the Bank of Mauritius has wide powers to set rates, etc. Anyway they have the powers, I think.
Mr Guimbeau: We must be sure, Mr Deputy Speaker, Sir, if not we have to amend.
(Interruptions)
M. le président, notre secteur d’exportation est  en grande difficulté. Est-ce que le gouvernement va continuer à subir le dictat des banques ou bien laisser la banque de Maurice acheter le devise directement avec les exportateurs afin d’économiser sur les marges des banques
intermédiaires ?

Mr Duval: Mr Deputy Speaker, Sir, I think the right answer to this is to have the appropriate exchange rate that is not misaligned and that is what we are doing. I do not think, Mr Deputy Speaker, Sir, that the Bank of Mauritius should suddenly replace the whole banking
sector and we would end up with only one bank in Mauritius, the Bank of Mauritius. That is not appropriate and neither is it appropriate that we should have two-tier systems for exchange rates.
I think one exchange rate for everybody that is the solution, but an appropriately aligned exchange rate.
Mr Guimbeau: I agree with the hon. Minister but it is the duty of the Bank of Mauritius to see to it that Commercial Banks act and be fair to all customers. I think that is the duty of a bank and the Governor of the Bank of Mauritius, Mr Speaker, Sir.