Sharing of losses for a new sustainable economic landscape |06 June 2020

Governor Abel (Photo: Thomas Meriton)

Irrespective of your line of work, standard of living, or position, you need to re-evaluate your budgeting strategies as part of the collective responsibility, accountability and sharing of losses for a new sustainable economic landscape.

Governor of the Central Bank of Seychelles (CBS) Caroline Abel stressed on the statement yesterday during her weekly press conference to update the public on the foreign exchange reserves policy and strategy vis-à-vis the COVID-19 pandemic.

She once again reminded everyone that the whole local situation will require collective responsibility and accountability, including reduction in consumption and moderate expenditure, even if the impact will not be equally felt.

Governor Abel also noted that with the resumption of commercial flights, the country is more vulnerable and more exposed to a second wave of the COVID-19, while there is also the vital need for economic activities.

A situation which she described as a dilemma which requires a balance between health and economy.

Once again Governor Abel reminded everyone to remain realistic as it is very unlikely that the travel industry, notably tourism which is our main source of foreign exchange, will bounce back quickly and it is therefore important that the country has sufficient resources to support itself for the coming months, even years.

The local foreign exchange market recorded a drop of 0.4% or 8cts in the US dollar (USD) rate of exchange, while the euro (EUR) was at its highest at R20.31 compared to R19.87 as at May 28, 2020.

For the week ending June 3, 2020, the supply of foreign exchange on the local market increased from USD 7.9 million to USD 8.5 million. In view of the high rate of exchange, the appetite for foreign exchange dropped, thus affecting the demand for same which was significantly low at USD 7.7 million compared to the previous week which was USD 11.6 million.

In addition it is noted that a total of USD 1.8 million was sold to Seychelles Trading Company (STC) from the international reserve to purchase essential commodities, precisely food products and as at June 4, 2020 the gross international reserve was USD 609 million and net international reserve was USD 457 million which is expected to last as long as possible.

Roland Duval