Bank of Mauritius
Encyclopedia
The Bank of Mauritius is the central bank
of the Republic of Mauritius. It was established in September 1967 as the central bank of Mauritius. It was modelled on the Bank of England
and was, in effect, set up with the assistance of senior officers of the Bank of England.
Amongst its responsibilities is the issuance of the Mauritian currency, the Mauritian rupee
.
The first Bank of Mauritius started operations in 1813 or so, but survived only until 1825.
The second Bank of Mauritius was a British overseas bank with two boards of directors, one in London
and the other in Port Louis
. It began operations in 1832 and favored the interests of the planter class. In 1838 traders established Mauritius Commercial Bank
to give themselves an alternative source of credit as until its establishment the Bank of Mauritius had a monopoly on the island. The financial crisis of 1847 in London resulted in the collapse of the sugar market, and severe losses to both of Mauritius's banks. Bank of Mauritius ceased business in 1848, though the Mauritius Commercial Bank has survived to the present.
Local interests established the third Bank of Mauritius in 1894 to take over the local business of the failed New Oriental Bank Corporation. In 1911 the bank opened a branch in the Seychelles. However, in 1916 the Mercantile Bank of India (est. 1893) acquired the bank. HSBC
in turn acquired the Mercantile Bank in 1959. Because of this history, HSBC refers to itself as the oldest foreign bank in Mauritius. The next foreign bank to arrive, and to survive to the present, was National Bank of South Africa, an ancestor of Barclays Bank Mauritius
.
In addition to the above three banks, a bank by the name of the Colonial Bank of Mauritius, Bourbon, and Dependencies, operated between 1812 and 1813.
The setting up of the Bank of Mauritius marked the beginning of a new phase in the monetary history of Mauritius, with the monetary system moving forward from the stage of 'Sterling Exchange Standard', under which currency was issued in exchange for sterling at a fixed rate of exchange, to that of a 'managed currency' in which the discretionary role of the monetary authority becomes important.
The Bank has been set up as the authority which is responsible for the formulation and execution of monetary policy consistent with stable price conditions. It also has responsibility for safeguarding the stability and strengthening of the financial system of Mauritius.
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
of the Republic of Mauritius. It was established in September 1967 as the central bank of Mauritius. It was modelled on the Bank of England
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
and was, in effect, set up with the assistance of senior officers of the Bank of England.
Amongst its responsibilities is the issuance of the Mauritian currency, the Mauritian rupee
Mauritian rupee
The rupee is the currency of Mauritius.It is theoretically divided into 100 cents; however, as at October 2011, only 5 and 20 cent coins, are currently in circulation, the latest mintage of these two coins was in 2010. A Half Rupee coin is also in circulation.-History:The rupee was established by...
.
History
In the 19th Century three separate commercial banks, now all defunct, operated under the Bank of Mauritius name.The first Bank of Mauritius started operations in 1813 or so, but survived only until 1825.
The second Bank of Mauritius was a British overseas bank with two boards of directors, one in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
and the other in Port Louis
Port Louis
-Economy:The economy is dominated by its port, which handles Mauritius' international trade. The port was founded by the French who preferred Port Louis as the City is shielded by the Port Louis/Moka mountain range. It is the largest container handling facility in the Indian Ocean and can...
. It began operations in 1832 and favored the interests of the planter class. In 1838 traders established Mauritius Commercial Bank
Mauritius Commercial Bank
Mauritius Commercial Bank , founded in 1838, is the oldest and largest banking institution of Mauritius. It is also the oldest banking institution south of the Sahara and one of the oldest banks of the Commonwealth to have preserved its original name...
to give themselves an alternative source of credit as until its establishment the Bank of Mauritius had a monopoly on the island. The financial crisis of 1847 in London resulted in the collapse of the sugar market, and severe losses to both of Mauritius's banks. Bank of Mauritius ceased business in 1848, though the Mauritius Commercial Bank has survived to the present.
Local interests established the third Bank of Mauritius in 1894 to take over the local business of the failed New Oriental Bank Corporation. In 1911 the bank opened a branch in the Seychelles. However, in 1916 the Mercantile Bank of India (est. 1893) acquired the bank. HSBC
HSBC
HSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine...
in turn acquired the Mercantile Bank in 1959. Because of this history, HSBC refers to itself as the oldest foreign bank in Mauritius. The next foreign bank to arrive, and to survive to the present, was National Bank of South Africa, an ancestor of Barclays Bank Mauritius
Barclays Bank Mauritius
An ancestor of Barclays Bank, National Bank of South Africa, first entered Mauritius in 1919. Since then, Barclays Bank Mauritius has grown to be the third largest bank in Mauritius, after Mauritius Commercial Bank and State Bank of Mauritius, with 20 branches and a market share of about 10-12%...
.
In addition to the above three banks, a bank by the name of the Colonial Bank of Mauritius, Bourbon, and Dependencies, operated between 1812 and 1813.
Board of Commissioners of Currency
Before the establishment of the Bank, the currency issue was managed by a Board of Commissioners of Currency. The duties of the Board were restricted to those of an issuing authority.The setting up of the Bank of Mauritius marked the beginning of a new phase in the monetary history of Mauritius, with the monetary system moving forward from the stage of 'Sterling Exchange Standard', under which currency was issued in exchange for sterling at a fixed rate of exchange, to that of a 'managed currency' in which the discretionary role of the monetary authority becomes important.
Objectives of the Bank
The Bank of Mauritius Act 1966 (as amended) lays down the purposes of the Bank which are to 'safeguard the internal and external value of the currency of Mauritius and its internal convertibility' and to 'direct its policy towards achieving monetary conditions conducive to strengthening the economic activity and prosperity of Mauritius.'The Bank has been set up as the authority which is responsible for the formulation and execution of monetary policy consistent with stable price conditions. It also has responsibility for safeguarding the stability and strengthening of the financial system of Mauritius.
Online Sales of commemorative coins
On the 12th March 2008, the Bank of Mauritius launched the online sales of commemorative coins and Dodo Gold Coins to international buyers.See also
- Central banks and currencies of AfricaCentral banks and currencies of AfricaThere are two African currency unions associated with multinational central banks; the West African Banque Centrale des Etats de l'Afrique de l'Ouest and the Central African Banque des Etats de l'Afrique Centrale...
- Economy of MauritiusEconomy of MauritiusThe economy of Mauritius refers to the economic activity of the island nation of Mauritius.-Overview:Since independence in 1968, Mauritius has developed from a low-income, agriculturally based economy to a middle-income diversified economy with growing industrial, financial, and tourist sectors....
- List of central banks
- Mauritian rupeeMauritian rupeeThe rupee is the currency of Mauritius.It is theoretically divided into 100 cents; however, as at October 2011, only 5 and 20 cent coins, are currently in circulation, the latest mintage of these two coins was in 2010. A Half Rupee coin is also in circulation.-History:The rupee was established by...