Dr. Priscilla Muthoora Thakoor: "At least 85% of residential property sales must now be converted to rupees"

In her statement published in the 58th Annual Report of the Bank of Mauritius on Thursday, November 27, Governor Dr. Priscilla Muthoora Thakoor - in office since September 29, 2025 - provides an overview of the economy, the foreign exchange market, investments in government securities, and the central bank's priorities. Here are the highlights!

What Dr. Priscilla Muthoora Thakoor said about...
...her priorities:
"My immediate priorities are to ensure the continuous execution of statutory mandates, to maintain the institution's integrity, to strengthen the credibility of the Bank of Mauritius, and to guide it through current and emerging challenges. My previous tenure at the central bank has been invaluable in facilitating my transition into this new role. By accepting this position, I am committed to serving the country to the best of my abilities."

...inflation:
"The Bank of Mauritius projects that overall inflation will be around 3.8% in 2025, barring unforeseen circumstances. This figure falls well within the target range of 2 to 5%."

...the current account deficit:
"We expect the current account deficit to rise slightly to 6.5% in 2025, primarily due to larger deficits in goods accounts and secondary income."

...tourism:
"The services account is expected to benefit from the revitalization of the tourism sector, with gross receipts projected to reach new heights in 2025 after hitting an unprecedented Rs 93.6 billion in 2024."

...the global economic situation:
"Uncertainty continues to weigh on global economic prospects, with tariffs remaining a major concern. The current challenging economic context requires innovative thinking and increased attention to sustainability and resilience. In this regard, the Bank of Mauritius is actively collaborating with other central banks and international organizations to integrate best practices into its operations."

...foreign exchange flows:
"Foreign exchange flows improved during 2024-2025. The turnover recorded by banks and foreign exchange operators increased by 17% compared to the previous fiscal year, reaching USD 14.4 billion. This increase in flows is due to policy measures aimed at correcting market distortions caused by unauthorized foreign exchange broker activities, inter-company transactions, and companies conducting foreign exchange operations outside the scope of their licenses, which created a parallel market."

...various property schemes:
"The government has amended regulations related to the Integrated Resort Scheme (IRS), Real Estate Scheme (RES), Invest Hotel Scheme (IHS), Property Development Scheme (PDS), and Smart City Scheme (SCS). Under these new regulations, at least 85% of residential property sales must now be converted to rupees."

...the rupee:
"In addition to fluctuations in international currencies, domestic factors have continued to influence the exchange rate of the rupee, which appreciated by 5% against the dollar during the 2024-2025 fiscal year. In its 2025 Article IV report, the IMF maintained the rupee's floating exchange rate regime. The Bank of Mauritius's interventions amounted to USD 415 million during the 2024-2025 fiscal year, with the majority (USD 365 million) occurring in the second half of 2024."

...investment in government securities:
"There has been an increase in investments in government securities by individual savers, rising from Rs 7.5 billion at the end of June 2024 to Rs 12.3 billion at the end of June 2025, including Rs 550 million from foreign investors. Pension funds and insurance companies held Rs 85 billion and Rs 56 billion in government securities, respectively, at the end of June 2025, representing about 76% of the total assets in the non-bank sector."

...banking legislation:
"The Bank of Mauritius is working on a revamp of banking legislation to reflect recent developments and international best practices. The updated laws will ensure robust control mechanisms and further enhance the independence of the Bank of Mauritius. Strengthening our legislative framework will ensure that the Mauritian jurisdiction remains a pillar of stability and trust in our financial system."