Mauritius has seen an improvement in the availability of foreign exchange on the domestic market, although the forex market remains tight amid persistent excess demand and structural imbalances.
The Prime Minister, Dr Navinchandra Ramgoolam, made this statement this morning in the National Assembly in reply to a Parliamentary Question on the availability of United States Dollars on the domestic foreign exchange market.
Dr Ramgoolam stated that foreign exchange purchases by banks and foreign exchange dealers reached a record USD 7.4 billion in 2025, while sales stood at USD 7.8 billion, representing an increase of nearly 20 percent compared to 2024. Between January and 26 August 2026, foreign exchange purchases amounted to USD 5.16 billion, while sales totalled USD 5.06 billion, he added.
The Prime Minister noted, however, that the forex market remains tight, partly due to the hoarding of foreign exchange by some businesses. He also pointed to a structural imbalance resulting from the significant increase in imports, which has generated persistent excess demand for foreign currency.
To address these challenges, Prime Minister Ramgoolam stated that Government and the Bank of Mauritius have implemented a range of measures to strengthen the regulatory framework governing foreign exchange transactions and improve the functioning of the domestic market. He further indicated that the Bank of Mauritius has intervened directly to provide foreign exchange liquidity, selling USD 224 million in 2025 and a further USD 65 million since the beginning of 2026.
Dr Ramgoolam also outlined measures aimed at increasing foreign currency inflows, including requirements relating to proceeds from villa sales under the Property Development Scheme, tax payments by businesses earning at least 50 percent of their turnover in foreign currency, and VAT on accommodation services.
He underscored that Government’s investment-led and production-oriented growth strategy, including import substitution, strengthening food security, expanding renewable energy and boosting exports, is expected to progressively reduce the demand-supply imbalance.
The Prime Minister reassured that the Bank of Mauritius continues to closely monitor developments in the foreign exchange market and remains ready to intervene where necessary to maintain orderly market conditions and stability.
01 September 2026
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Topics: National Assembly
