Mauritian competitiveness in general (beyond real exchange rate issues) appears to have declined with respect to exports, labor productivity, growth in unit labor costs, and other structural competitiveness indicators” (IMF: Mauritius External Balances from a Long-Term Perspective – May 2012) Excerpt 3: “The balance of evidence suggests the need for measures to address external imbalances and declining competitiveness…….the real exchange rate in 2012 might be considered overvalued……although the evidence is not fully conclusive….the exchange rate is one of the tools to address analyzed imbalances; likely partially effective in the short run, but also probably the most ineffective tool for the long run.”  (IMF: Mauritius External Balances from a Long-Term Perspective – May 2012) Excerpt 4: “The recent strengthening of the Rupee owes to the depreciation of the Euro and the deteriorating conditions in the Euro area.” (IMF: Mauritius External Balances from a Long-Term Perspective – May 2012) Excerpt 5: “Empirical results indicate that the BOM’s FX intervention has generally been effective in affecting the volatility of the rupee exchange rates.” (IMF: Mauritius External Balances from a Long-Term Perspective – May 2012) Well, that should put paid to the argument that the Central Bank has been misguided in its forex intervention policies as much as to the contention that the salvation of the export sector depends on a currency fix that the Bank should provide.
The BSP advocates the ”zero trust model,” directing its supervised financial institutions to subject any access to their digital infrastructure to verification and security screening. The BSP has also embarked on cybersecurity campaigns, issuing advisories to warn the public on emerging cyberthreats and scams especially during this unprecedented health crisis The COVID-19 era has indeed changed the way we live, work, and play.