As the net international reserves situation improved and became more comfortable, policy aimed more at achieving a stable real effective exchange rate. Exchange controls which were the bread and butter of the Bank of Mauritius at its creation were gradually liberalized.
In September 1993, Mauritius accepted the obligations of Article VIII of the Articles of Agreement of the IMF and all current account transactions were liberalized. Within a year we fully liberalized the capital account. An interbank foreign exchange market was established with a greater role assigned to market forces in the determination of the exchange value of the Mauritian rupee.