aim is for the purchase of various risk assets by the bank to act as a catalyst to increase the demand for and supply of riskier financial assets in the market and spur the effective use of the ample funds that have been already provided to the market so as to provide a boost to the economy. the bank ’ s decision to encourage a decline in longer - term interest rates and various risk premiums through comprehensive monetary easing was based on its experience with the quantitative easing policy16 during the five years from march 2001 through march 2006. since one of the ways in which quantitative easing worked was through the policy duration effect, it is difficult to clearly isolate the effects of quantitative expansion itself in assessing the overall effect of the policy. however, most subsequent empirical studies suggest that although quantitative easing contributed to stabilizing the financial system, the impact on economic activity and prices was limited. 17 moreover, preliminary assessment indicates that the extent to which the decline in interest rates resulting from the policy duration effect of the quantitative easing policy affected the yields of other financial assets – the so - called “ portfolio rebalancing effect ” – was limited. given these results, the bank judged that – in a situation where there was little room for a further decline in short - term interest rates – the most effective policy to achieve additional monetary easing would be to try to directly effect a decline in longer - term interest rates and various risks premiums, meaning that this policy pursues the first and the third of the objectives outlined earlier, that is, to lower interest rates and achieve qualitative easing. however, i did not concur with all the measures of the bank ’ s comprehensive monetary easing policy. specifically, i disagreed with the inclusion of government securities as assets to be purchased through the program. the main reason is that i believe it would be more effective to strengthen efforts to effect a decline in risks premiums, which remain at a high level – that is, to focus on qualitative easing – than to focus on longer - term interest rates at a time when financial institutions were raising the weight of government securities in their the bank ’ s quantitative easing policy consisted of four measures : ( 1 ) the main operating target for money market operations was changed from the uncollateralized overnight call rate to the outstanding balance of the current accounts at the bank ; ( 2 ) the new procedures for money market operations would remain in place until the rate of change in the cpi ( excluding perishables, on a nationwide statistics )

rundheersing bheenick : the new system for clearing cheques in mauritius remarks by mr rundheersing bheenick, governor of the bank of mauritius, at the pre - launch event of the cheque truncation system, port - louis, 22 july 2011. * * * i am very pleased to welcome you to the pre - launch event of the cheque truncation system ( cts ). we are today launching an awareness campaign on the new modern system for clearing of cheques, the cts, which will soon be implemented in our country. the setting up of the cts is a significant milestone in the mauritian banking sector. it is the fruit of a very close collaboration between the bank of mauritius ( bom ) and the mauritius bankers association ( mba ). i am very happy to have around me the acting chairman and the ceo of the mba, as well as the ceos of banks. as you may be aware, as per the provisions of the bank of mauritius act 2004, the organization of the clearing house is done in conjunction with banks. so this is a bom / mba event. the port louis clearing house following the enactment of the bank of mauritius act 1966, at the suggestion of the bank of mauritius, the mauritius bankers ’ association established, on 19th august 1968, a mauritius clearing house for the five banks which constituted the banking industry of the country at the time. the meeting place was the bank of mauritius. later it became the port - louis clearing house. over the years, the port - louis clearing house went through a process of modernization. first the cheques were standardised with the introduction of the magnetic ink character recognition ( micr ) technology. concurrently, information regarding clearing and settlement of cheques started being exchanged through the mauritius automated clearing and settlement system ( macss ). nonetheless, the port - louis automated clearing house ( plach ), as it was renamed, continues to function on a manual mode, with the exchange of physical cheques. the cts will do away with this manual process which, as you will see, is quite tedious. let me briefly explain the process. the clearing process cheques deposited by clients are collected from all bank branches ( 215 ) and transported to the respective head office. there, the cheques are sorted according to the respective banks, bundled together and transported to the plach twice a day, at 10. 00hrs and 15. 00hrs.