The central bank of Mauritius said on Friday it was ready to take steps if needed to protect the Indian Ocean island’s economy from any fallout from the British referendum and said it had previously reduced its exposure to the pound sterling.
“The bank had recently raised the proportion of gold and U.S. dollar in the foreign exchange reserves and concurrently reduced exposures to the pound sterling,” Bank of Mauritius said in a statement, adding that it was monitoring the situation.
“Should the need arise, the bank stands ready to take measures as appropriate to protect the best economic interests of Mauritius in the circumstance.”
Central Bank of Kenya assured investors that it is ready to intervene in the money and foreign exchange markets to ensure their smooth operation. The central bank has been ramping up its firepower raising its reserves to more than 5 months of import cover.
However analysts say the Kenyan shilling is over valued, a position which makes it vulnerable to shocks. UK is Kenya’s third largest export market. Other major central banks have also announced their readiness to intervene to minimize disruption in their markets.
The UK will remain an important trading partner for SA, the Presidency said on Friday.The UK was SA’s eighth largest trading partner last year, and SA’s export to the UK was R41bn, with imports at R35bn. “The UK will have a period of two years to negotiate their exit from the European Union after formal notice to withdraw … has been given,” the Presidency said in a statement.
