The Seychelles rupee has risen in value versus the dollar as a result of the strong return of tourism activity to the island nation, making it one of Africa’s top ten performing currencies this year.
The Seychelles rupee gained 2.9 per cent against the dollar this week, taking its year-to-date gain to 60%, making it the top performer among 146 currencies tracked by Bloomberg internationally.
The Seychelles Central Bank (CBS) on Friday said that since the country implemented a floating currency rate regime in November 2008, variations in the rupee’s external value are expected to reflect market conditions.
“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 also stated that since March, the country’s entry rules have been relaxed, resulting in increased supply from tourism, which is the country’s principal source of foreign money.
On March 25, Seychelles, an archipelago in the western Indian Ocean, reopened its borders to relaunch its tourism economy, which had been severely impacted by the COVID-19 outbreak.