1 / 4 bis central bankers'speeches export sector and balance of payments the export of goods and services sector is expected to slump massively, as external demand plunges amid severe economic contraction in our main exports markets. the significant drop in export earnings will amplify the current account deficit, projected at about 12 % of gdp in 2020. this year, the overall balance of payments is forecast to record a deficit. the tourism sector is a major supplier of foreign exchange. the foreign exchange loss from this industry alone has been estimated at around rs12 billion for april and may 2020. last year, tourism receipts amounted to rs63 billion. this year, as long as the tourism industry remains inoperative, there will be significant shortfalls in foreign exchange receipt. the pressure on foreign exchange earnings will be amplified by the shortfall in export earnings in other sectors as well, such as textile and fish products. the bank, in line with its mandate, has taken necessary measures to maintain stability on the foreign exchange market and address any deficiency in foreign exchange liquidity. the bank has sold usd172 million to banks since 18 march 2020. in addition, the bank conducted swap transactions with banks for a total of usd100 million under its support programme. furthermore, the bank has also provided the state trading corporation ltd ( stc ) with foreign exchange for a total of usd55 million since 26 march 2020. the bank will continue to provide foreign exchange to the stc to ensure adequate supply of essential goods to the public. i have to highlight that mauritius has a floating exchange rate regime, as per the imf classification. the recent fluctuations of the exchange rate of the rupee is the result of the interplay of market forces, both domestic and international. the bank is continuously monitoring activities on the domestic foreign exchange market. it stands ready to intervene as required to contain excessive exchange rate volatility. at this point, let me reiterate the core mandates of the bank : to maintain price stability, to promote orderly and balanced economic development, and to ensure the stability and soundness of the financial system. as such, and given the current context, the bank of mauritius will do whatever it takes to safeguard the economy. all the measures taken by the bank since march 2020 are a reflection of this commitment. concretely, these measures aim at alleviating the financial burden of economic operators, smes, households, and individuals affected by covid - 19 and protecting jobs. it must be noted

’ s social amelioration programs at the height of the pandemic. moving forward, we need to ensure that our tax system will be able to mobilize the needed revenues to finance the requirements of the country. tax professionals can contribute to this objective by promoting tax compliance and transparency in financial reporting by individuals and enterprises. tax policy may also be enhanced to direct private sector investment towards : 1. activities that will promote digital transformation as well as “ greening ” of our economy, and 2. companies that demonstrate good governance and sustainability in their corporate footprint. the support of the tmap in advocating for tax reform in these areas will align with our strategic initiatives. i hope that tmap can be a partner in our efforts to overcoming this crisis. to close, i ’ d like to share this nugget of wisdom from martin luther king, jr. “ the ultimate measure of a man is not where he stands in the moments of comfort and convenience, but where he stands at times of challenge and controversy ”. let ours, therefore, be the generation which history will judge as responsible for shaping a more resilient, inclusive, and sustainable future for the philippines beyond this crisis. thank you and i wish everyone a productive meeting ahead. 4 / 5 bis central bankers'speeches 5 / 5 bis central bankers'speeches