When we contemplate a supervisory approach that illuminates reputational risk, we might be able to more fully uncover the interconnection of risks that certain activities could impose on investors, creditors, counterparties, and taxpayers.
Five years ago, substantial capital outflows triggered by a loss of confidence in the rupee had brought down the foreign reserves of the Bank of Mauritius to unacceptable levels. The rapid weakening of the Euro in the international exchanges following its introduction in January 1999 translated into a significant appreciation of the rupee.