Madam Speaker, when this Government took office in November last, the forex market was in total chaos. The exchange rate of the Mauritian rupee was on a steeply declining slope, depreciating at a very rapid pace vis-à-vis all currencies, in particular against the US dollar, thus fuelling inflationary pressures in the

25 economy and rapidly eroding the purchasing power of the population. Madam Speaker, this is the situation that we have inherited. In fact, from December 2014 to October 2024, the rupee depreciated, some say intentionally, by 46% against the US dollar and by 21% against the British Pound. To make matters worse, the previous government even indulged in money printing of over Rs180 billion purposely to give a false sense of prosperity to Mauritians. This has exacerbated the already excess liquidity situation in the banking system which, as we all know, further fuelled inflationary pressures. It is no wonder, Madam Speaker, that consumer prices in Mauritius increased by a dramatic 43.3 percent from December 2014 to October 2024, and import prices went up by 63 percent. I think these figures speak for themselves. The dramatic fall in the value of the Mauritian rupee has had profound and far-reaching adverse effects on our economy, affecting households, businesses, and overall confidence in the system. One of our first priorities when we came into power was to correct that disastrous mismanagement of the previous government. The Bank of Mauritius has acted urgently to stabilise the value of the rupee and to curb inflationary pressures through its monetary policy. The Bank of Mauritius adjusted its policy rate in February 2025. It also issued instructions to banks to ensure that forward transactions are priced in a fair manner and in accordance with market fundamentals. In addition, the Bank of Mauritius has sold USD 244 million on the market from November 2024 to 04 December 2025. At the level of Government, we have supported the efforts to increase the supply of forex on the market by imposing that at least 85 percent of the proceeds from sales of villas under the Property Development Scheme should be paid in rupees. Furthermore, as from this fiscal year, all businesses that receive at least 50 percent of their annual turnover in foreign currency are paying their tax in foreign currency. The Tourist Fee of 3 Euro per night per tourist effective as from 01 October this year is also generating additional foreign exchange for the country. Madam Speaker, these measures have contributed to an improvement in the forex market conditions. I am informed by the Bank of Mauritius that as from 03 January 2025 to 04 December 2025, the rupee has appreciated by 3.4 percent against the US dollar, whereas

26 during the same period, it actually depreciated by 5.5 percent. During the same period, the Bank of Mauritius has also successfully reduced the depreciating trend against the British Pound from 6 percent to 3.6 percent. The measures taken to stabilise the exchange rate have contributed to a fall in headline inflation in Mauritius. Import prices have actually gone down by 4.4% between the third quarter of 2024 and the second quarter of 2025. The headline inflation rate is estimated at 3.5 percent in November 2025, well within the target range of 2 to 5 percent. Madam Speaker, it is clear today that the shift away from the previous regime’s opacity, ad-hoc policymaking and excessive money-printing have restored a sense of predictability and discipline to our economic management. The rupee is now more stable. We have been able to reduce inflation, as I said, it stands at 3.5 percent this month. May I remind the House also that a number of amendments to the Statistics Act were introduced in the Finance Act 2025 so as to restore credibility and independence to Statistics Mauritius. Our actions have brought the country back on a path of economic stability and investor confidence has been restored. But we still have a long way to go.

Thank you. Now, hon. Babajee! PRISONS DETAINEES – HIV CASES