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The Rupee devaluates

Filed under: Economy — Stéphane Lee at 9:00 am on Wednesday, August 30, 2006

It has been a rough ride for the Mauritian Rupee since the beginning of the year: losing nearly 15% against both the Euro and the British Pound. It loses only 5% against the “weak” US Dollar. Sithanen, the Finance Minister, is calling those having foreign currencies to convert them to Rupees. There is no sign that the Rupee will be able to claim back the lost value in the future. It is understandable that they do not wish to convert the foreign currencies. The Mauritian economy is at a cross-road. Major reforms being undertaken by Sithanen will either make or break the country. Sithanen should be selling more “dreams” to the people if he wants to succeed.

3 Comments »

24

Comment by Patrick Ng

30 August 2006 @ 9:46 am

Sithanen should stop using a very pessimistic approach and always put the blame on the previous government. When the economy is facing some tough challenges, the last thing the population and investors need is to be frightened.

Economy situation bad->Sithanen pessimistic approach->population does not spend/Investors do not invest->Economic situation worse

People owning foreign currency will unlikely sell convert them to rupees as long as they don’t see a bright future.

29

Comment by clive

31 August 2006 @ 8:34 am

That’s the way politics in mtius goes.. “pa mwa sa li sa”. Every new govt in place would blame the precedent one for errors or budget deficits.
“dreams” again?? Come on, the 100 days change are over.

184

Comment by Akash

28 November 2006 @ 6:14 am

Oy!

Can someone motivate me to change my dollars into rupees…? Giji moi do! Why the hell would i do that? People like Sithanen may have gone through hard times studying in harsh conditions etc, but they have lost track of mauritian reality since long. His children may have never know what it is to spare rupee by rupee before buying a pair of shoes.

An example: just ask Rama how much it costs to travel from Rose Hill to Port Louis by bus. i bet 100USD that he’s off the mark by more than 20% of the real price.

Now just ask Navin how much costs a cask of Blue Label. :-) Ok, ok, too easy. Ask Paul how much a Pierre Cardin suit costs? Ayo, sorry, could not help it…

Just to tell you how our politicians are off the mark in all situations. They are so far from our relaties that we, Dodolanders, will continue to have to bear these people as long as people from the middle class are not duly represented in decision making processes.

Will continue later, got to work now…

- Ajéjé

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