Seychelles rupee stands firm against other currencies in Africa

 Seychelles rupee stands firm against other currencies in Africa

Seychelles rupee stands firm against other currencies in Africa.

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The lifting of the covid-19 restrictions and subsequence opening of the tourism sector to the island nation is fuelling a rise in the value of the Seychelles rupee against all other currencies in Africa, making it among the top 10 performing currencies in Africa this year, according to a financial news outlet.

The Central Bank of Seychelles said this is good news for Seychelles in 2021 for the reason that stronger rupee means a reduction in the price of imports, and lower priced foreign goods.

One weakness sighted is the fact that a stronger rupee means prices rise for tourists, a dream trip to Seychelles at bargain prices become shared.

For one and half year Seychelles partially open its tourism sector and other sectors have a massive drawback but with the return of normalcy the island had seen the resurrection of the tourism sector and strengthen of the rupee.

“The Seychelles rupee strengthened 2.9 percent this week to 13.31 against the dollar, bringing its gain so far in2021 to 60 percent — the best performer of 146 currencies tracked by Bloomberg globally,” the website

The Central Bank of Seychelles (CBS) told the media on attributed the goals achieved floating exchange rate regime adopted almost decade ago, with the current movements determined by market forces that is demand and supply.

“Hence, factors that influence demand and supply of foreign currency would impact on the strength of the rupee against the US dollar.

Thus far in 2021, supply of foreign exchange has been stronger than demand, causing an appreciation of the rupee,” said the CBS.

The Central Bank added that the relaxation of entry requirements into the country since March has contributed to higher supply from tourism activity, the top primary source of foreign exchange.

Seychelles, an archipelago in the western Indian Ocean, reopened its borders on March 25 to relaunch its tourism industry which was severely affected by the downturn in travel amid the COVID-19 pandemic.

In the latest figures published by the National Bureau of Statistics(NBS) this month , the year to date figure for 2021 shows that 105,136 visitors disembarked in Seychelles.

Compared to 2020 when the figure was around 97,000, the year to date visitor arrivals increased by 8 percent.

The Central Bank has however pointed out  that it is forecasting to a high demand in festive season and the number of visitors could be doubled.

 “The expectation is that demand would pick up towards the end of the year to cover for growth in imports to meet higher aggregate demand and, therefore, consumption level around the festive seasons of Christmas and New Year.

Hence, should demand for foreign exchange exceed supply over a sustained period, this would trigger a depreciation of the Seychelles rupee.” said CBS

Tafadzwa William Mutsika

Tafadzwa Mutsika is an award-winning print, broadcast, and online journalist with more than 10 years of experience in the field. Tafadzwa has experience in financial reporting and Public relations since 2010. He is also a part-time lecturer in journalism and media studies. Possess excellent communication and presentation skills. Areas of Interest: Mining, energy, tax law, insurance, and corporate governance. Hobbies include -painting and sculpture.

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