Madam Speaker, with your permission, I will reply to Parliamentary Questions B/505 and B/511 together, as they relate to the same subject matter. As I have previously stated in this august Assembly, this Government and the new administration at the Bank of Mauritius have implemented a series of measures to rectify the chaotic situation that prevailed in the domestic foreign exchange market prior to November 2024. A pronounced mismatch between demand and supply has led to substantial shortages of foreign currency on the local market. Let me remind the House of some of the key measures taken – (a) The repo rate was raised by 50 basis points to 4.5 percent per annum in February 2025; (b) Instructions were given to commercial banks to ensure that all dealings in foreign exchange, including swaps and other derivatives, are effected through financial institutions duly licensed by the Bank; (c) The Bank enforced stricter regulation on intercompany transactions in foreign currencies as well as swaps and other derivatives; (d) Banks were instructed to ensure that forward transactions are priced in a fair manner and in accordance with market fundamentals, and (e) The regulatory arbitrage between the Financial Services Commission and the Bank of Mauritius regarding the purchase and sale of forex by Treasury Management Companies was discontinued. At the level of Government, Madam Speaker, we have reinforced these efforts through structural measures aimed at increasing foreign currency inflows. These including – (a) requiring that at least 85 percent of proceeds from the sales of villas under the Property Development Scheme be converted into rupees, and (b) mandating that the businesses earning at least 50 percent of their turnover in foreign currency pay their tax in full in foreign currency. In addition, the introduction of the Tourist Fee of 3 Euros per night per tourist, effective as 01 October 2025, has helped to ease the foreign exchange shortage. As a result of these measures, Madam Speaker, I am informed by the Bank of Mauritius that conditions in the domestic foreign exchange rate have improved. In 2025, both purchases and sales of foreign currency by banks and foreign exchange dealers reached historically high levels, reflecting increased market activity and a notable easing of liquidity constraints in the forex market. A similar positive momentum has been observed since the start of this year. Transactions in foreign currency by banks and foreign exchange dealers have increased by around 11 percent from the beginning of the year up to 22 April 2026. This reflects a continued strengthening of activity and confidence in the foreign exchange market. As market conditions have improved, the Bank of Mauritius has had to intervene to a lesser extent in the foreign exchange market in 2025. The Bank sold USD 224 million on the forex market during the year, compared to USD 372.3 million in 2024. This reduction in the volume of sales reflects the gradual easing of pressures in the market. The trend has continued into 2026, with the Bank selling USD 40 million on the domestic market from January to 23 April 2026. I am further informed by the Bank of Mauritius that the sales of US dollars on the market were sourced from official foreign currency reserves at the Bank of Mauritius. The situation, Madam Speaker, is improving, especially in view of the overall surplus in the balance of payments. The combined effect of raising the key rate, enhancing regulation, targeted interventions, and structural measures has led to better liquidity conditions and increased supply of foreign exchange. The Bank of Mauritius is continuously monitoring developments in the market and is having monthly meetings with the treasurers of banks through the Mauritius Financial Markets Committee. The Bank stands ready to take appropriate actions as may be required to ensure an adequate and orderly supply of foreign currency.

Yes, one question because time is up!

Est-ce qu’il pourrait nous donner plus de détails sur la provenance des devises des réserves ?

I don’t have all the details of the provenance from the Bank of Mauritius, but I can look into the matter. But I know, as I said, some measures are being taken. For example, on property, they have to pay now in rupees. This is increasing. Also, the three euros for the tourists, this also is coming to the foreign reserve.

Okay! Time is up now! Time is up! I have to inform you that B/514 has been withdrawn. So, now we go to questions to Ministers! The hon. Third Member for Flacq & Bon Accueil, Mr Ramkalawon! SECONDARY SCHOOLS – SYNTHETIC DRUGS – MEASURES