The Bank is responsible for the management of the foreign exchange reserves of the country pursuant to the Bank of Mauritius Act 2004. The mandate stipulates that the Bank shall determine the composition of the official foreign exchange reserves and it shall aim to achieve their security, liquidity and return.
The objectives of reserves management are achieved through a Strategic Asset Allocation (SAA) framework which is endorsed by the Board prior to implementation. The SAA formalizes the risk budget of the Bank and is reviewed on a yearly basis. It provides both a quantitative and qualitative framework for the eligibility of asset classes and the suitability of the currency composition from an asset-liability management perspective. The Asset Management Division of the Bank is responsible for the management and monitoring of the foreign exchange reserves of Mauritius.