The volume of Foreign Direct Investment flowing into Mauritius has increased very fast in recent years, and stood at Rs 6.4 billion in 2006, having risen more than sixfold since 2002. We are doing nicely on this score and I certainly do not want to sound like a carping critic.
Normally, one would have expected the Central Bank to busy itself with ways and means of sterilising these inflows. But – and I am not here talking only about Mauritius – I am getting increasingly concerned on the economic repercussions and the systemic risk implications of unbalanced and poorly-conceived foreign direct investment policies.