As such the exchange rate of the rupee has a lot to do with monetary policy. Monetary policy is effective only in a market based financial system. In any capitalist system the financial markets are the most market-oriented. Undue intervention in such markets over a protracted period of time will most likely turn out to be counterproductive.
In such a framework confidence is fundamentally an important ingredient that the Bank of Mauritius can provide to financial markets in the formation of judgements regarding interest rate and exchange rate. It goes without saying that the Bank of Mauritius should constantly seek to build confidence in the rupee.