Navin Ramgoolam: "The Mauritian Rupee is Now More Stable"
In an economic context marked by past fluctuations of the national currency, Prime Minister Navin Ramgoolam stated that he has stabilized the rupee over the past year. He made this assertion on Tuesday in response to a parliamentary question from Manoj Seeburn, the MP for Vieux Grand Port/Rose Belle. Official data indicates an appreciation of the rupee against the US dollar and a reduction in depreciation trends against the British pound, which Ramgoolam attributes to interventions by the Bank of Mauritius and fiscal measures. When the current government took office in November 2024, the foreign exchange market was in complete disarray, he claims. "The exchange rate of the Mauritian rupee was on a steep downward slope, depreciating rapidly against all currencies, particularly the US dollar, thus fueling inflationary pressures in the economy and quickly eroding the purchasing power of the population," said the Prime Minister. He characterized this situation as a legacy of the previous regime. From December 2014 to October 2024, the rupee depreciated by 46% against the US dollar and by 21% against the British pound. The previous government printed "over 180 billion rupees to create a false impression of prosperity," worsening excess liquidity and inflationary pressures.
The consequences were significant. Consumer prices increased by 43.3% during this period, while import prices surged by 63%. "The figures speak for themselves," emphasized Navin Ramgoolam. This depreciation had profound effects on the economy, affecting households, businesses, and overall confidence in the system. To address this, stabilizing the rupee became an immediate priority, highlighted the head of government. The Bank of Mauritius adjusted its key interest rate in February 2025 and issued instructions to banks to ensure fair pricing for forward transactions in line with market fundamentals. It also sold 244 million US dollars on the market between November 2024 and December 4, 2025. At the government level, measures were taken to increase the supply of foreign currencies. At least 85% of revenue from villa sales under the Property Development Scheme must be paid in rupees. Since this fiscal year, businesses receiving at least 50% of their annual turnover in foreign currencies can pay their taxes in foreign currency. These interventions have improved conditions in the foreign exchange market. From January 3 to December 4, 2025, the rupee appreciated by 3.4% against the US dollar, compared to a depreciation of 5.5% during the same period in 2024. Against the British pound, the depreciating trend was reduced from 6% to 3.6%. "These measures taken to stabilize the exchange rate have contributed to a decrease in overall inflation in Mauritius," stated the Prime Minister. Import prices decreased by 4.4% between the third quarter of 2024 and the second quarter of 2025. Overall inflation is estimated at 3.5% in November 2025, within the target range of 2 to 5%.
"The rupee is now more stable. We have managed to reduce inflation, which stands at 3.5% in November 2025," asserts Navin Ramgoolam. According to him, "the government's actions have set the country back on the path to economic stability and restored investor confidence."
