EDITORIAL

DEVALUATION IS HERE!

The only people oblivious to the current situation of the Seychelles Rupees are the top brass in the Government: The President, the Minister of Finance and the Central Bank Governor in particular. The Seychelles Rupees has systematically been made to lose value against all major currencies, since the announcement by Francis Chang Leng that SR is now competing against a new basket of currencies. This is devaluation by the back door.

Throughout his campaign for the presidency Mr. Michel reiterated time and time again that the Seychelles Rupees is not for turning and that it will not be devalued. “It will hurt the most vulnerable in society”, he is known to have said during the questions and answers sessions in the district in 2004 on assuming the presidency from Mr. Rene.

Mr. Michel has not kept this most solemn of promises made on the highest political alter during the campaign for the presidency last year. This begs the question; can we trust the words of our President this time around? In the campaign for the National Assembly elections - Mr. Michel will say anything to gain an advantage over his political rivals even if he has no intention to deliver on his promises as is now the case with the devaluation issue. The fact that no explanation is being offered on this state of affairs proves one thing and one thing only. The SPPF believes that they can get away with pulling the wool over the eyes of the electorate year in year out, elections after elections.

The current devaluation of the SR is having a negative impact on the allowance of Air Seychelles Crew; some have seen their monthly allowances gone down by sixty to one hundred pounds sterling. This represents a major cut in the salary of the crew.  That is so because the allowances are allocated in SR than converted at the prevailing foreign exchange rate. Another area where the devaluation is biting hard is with people travelling abroad for medical reasons; this sector is having to find more and more rupees to meet their medical bills aboard. We are living in today this hard reality. And what is President Michel saying on this issue? ABSOLUTELY NOTHING!   

Exchange rates for February 2007.

February 23, 2007
Copyright 2007: Seychelles Weekly, Victoria, Mahe, Seychelles