MAURITIUS · BANKING
Key Facts
- —The country Mauritius is a small Indian Ocean island nation and a financial centre for international holding companies and funds. Its currency is the rupee.
- —What happened On Wednesday 14 October the central bank halved the ratio on offshore and non-resident foreign-currency deposits to 4.5% from 9.0%.
- —The new ratios Banks hold 9.0% of rupee deposits and of residents’ foreign-currency deposits at the central bank. The 4.5% tier covers offshore companies and non-residents.
- —The deposit base Banks held Rs 758.7 billion (about US$16.1 billion) in rupee deposits and Rs 247.3 billion (about US$5.2 billion) in foreign currency in early August.
- —The deadline Banks have three months from 14 October, until mid-January 2027, to move to the new electronic reporting template for foreign-currency deposits.
- —The policy rate The central bank’s Key Rate stands at 4.75%, unchanged at the 12 August meeting after a 0.25-point rise on 20 May.
- —Still open How much of the foreign-currency deposit base sits in the lower tier, and what interest the central bank will pay on those reserves.
The Bank of Mauritius, the central bank, has halved the Mauritius reserve requirement on foreign-currency deposits of offshore firms and non-residents, to 4.5% from 9.0%. The revised rule took effect on Wednesday 14 October, and the daily L’Express reported it on Tuesday 20 October.
For US funds and companies that keep dollars in Mauritian banks, local lenders now park less cash at the central bank. The 9.0% ratio stays for rupee deposits and for residents’ foreign-currency deposits.
What the Revised Guideline Says
The revised Mauritius reserve requirement sets three ratios, replacing a single 9.0% rate that applied to all deposits since January 2023. Banks must hold 9.0% of rupee deposits of residents, non-residents and offshore firms, plus 9.0% of residents’ foreign-currency deposits.
Only foreign-currency deposits of Global Business Corporations, Authorised Companies and non-residents move down to 4.5%. The Bank of Mauritius published the revised text on its website on Thursday 15 October, a day after it took effect.
Who Holds the Offshore Deposits
Global Business Corporations and Authorised Companies are Mauritian-registered firms that mainly invest and trade abroad. Non-residents are people and firms based outside Mauritius, including embassies and international organisations.
The guideline requires banks to hold the reserve for dollar, pound and euro deposits in the same currency. Banks now tie up half as much cash at the central bank against the offshore deposits.
How Big the Deposit Base Is
In the 28-day period ended 6 August, rupee deposits were Rs 758.7 billion (about US$16.1 billion) and foreign-currency deposits Rs 247.3 billion (about US$5.2 billion). The central bank’s table of 13 August shows this, converted at 47.23 rupees to the US dollar on 20 October.
Required reserves then came to Rs 68.3 billion (about US$1.4 billion) on rupee deposits and Rs 22.3 billion (about US$471 million) on foreign-currency deposits. For every US$1 billion of offshore dollar deposits, the new ratio means banks hold US$45 million in reserve instead of US$90 million.
Interest, Penalties and the Deadline
Reserves held against the lower-ratio deposits earn interest at a rate set by the central bank, the guideline says. A bank that falls short can be fined up to three times the published advances rate and must pay within two working days.
Fines on rupee shortfalls follow the overnight lending rate, and those on dollar, pound and euro shortfalls follow the SOFR, SONIA and ESTR overnight rates. Banks have until mid-January 2027, three months from 14 October, to adopt the new electronic reporting template.
The Rate Backdrop
The central bank’s Key Rate, its main interest rate for lending to banks, stands at 4.75%. It left the rate unchanged on Wednesday 12 August after raising it by 0.25 points on Wednesday 20 May.
Mauritius is also dealing with faster price rises, which the Rio Times covered in its report on Mauritius inflation for September. The Mauritius reserve requirement changes how much cash banks must hold, not the price of money.
What It Means for US Readers
US investors and companies with dollar accounts or holding companies in Mauritius could see cheaper dollar banking, because lenders tie up less cash. The Mauritius reserve requirement change also makes the island a more competitive base for routing investment into Africa and Asia.
The rule does not change US sanctions, tax or reporting duties for those structures, and it does not touch rupee deposits. Readers with Mauritian exposure can find the wider picture in the Rio Times guide Mauritius Explained 2026.
What Is Not Known
The central bank has not said how much of the Rs 247.3 billion (about US$5.2 billion) foreign-currency base belongs to offshore firms and non-residents. It has also not published the interest rate on the lower-tier reserves.
The guideline states only that the framework aims at prudent management of bank liquidity, with no further reason for the timing. The date of the central bank’s next rate meeting has not been announced.
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Frequently Asked Questions
What is the new Mauritius reserve requirement?
The Mauritius reserve requirement is now 9.0% for rupee deposits and for residents’ foreign-currency deposits. For foreign-currency deposits of offshore companies and non-residents it is 4.5%.
When did the new rule take effect?
The revised guideline took effect on Wednesday 14 October 2026. Banks have three months from that date to move foreign-currency reporting to the new electronic template.
What is a Global Business Corporation?
It is a company registered in Mauritius that mainly does business or holds investments outside the island. These companies, together with Authorised Companies and non-residents, fall in the lower 4.5% tier.
Will banks earn interest on these reserves?
Yes, the guideline says reserves held against offshore and non-resident foreign-currency deposits are remunerated at a rate set by the central bank. That rate has not been published.
Why does the change matter to US investors?
The Mauritius reserve requirement could make dollar banking cheaper for US funds and companies with accounts or holding companies there. It does not alter US tax or sanctions rules.
Sources: Bank of Mauritius, Guideline on Cash Reserve Requirement (revised 14 October 2026), 14 October 2026; Bank of Mauritius, guideline page, 15 October 2026; Bank of Mauritius, Maintenance of Cash Reserve Ratio by Banks, 13 August 2026; Bank of Mauritius, interest rate decisions, 12 August 2026; L’Express (Mauritius), Nouvelle directive des réserves obligatoires par la Banque de Maurice, 20 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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