Contents -- I. Introduction -- II. The Evolution of the Exchange Rate in Mauritius -- III. Empirical Analysis of the Equilibrium Exchange Rate -- A. Macroeconomic Balance Approach (FEER-MB) -- B. Single-Equation Fundamental Equilibrium Exchange Rate Approach (FEER-SE) -- C. Capital-Enhanced Equilibrium Exchange Rate Approach (CHEER) -- D. External Sustainability Approach (ES) -- IV. Structural Competitiveness Analysis -- V. Conclusions -- List of Figures -- 1. Exchange Rate Regimes and the Nominal Exchange Rate, 1948−2007 -- 2. Nominal and Real Effective Exchange Rates, 1980−2007 -- 3. Price-based Real Effective Exchange Rate Indices, 1980−2006 -- 4. FEER-MB Approach: Actual and Fitted CA balance -- 5. FEER-MB Approach: CA Norms vs. Underlying CA -- 6. FEER-SE Approach: Actual vs. Equilibrium REER -- 7. CHEER Approach: Actual vs. Equilibrium NER -- 8. Composite Indicators of Structural Competitiveness -- 9. Relative Performance on Trade Costs -- References -- Appendix: List of Tables -- 1. Summary Statistics for FEER-MB Approach -- 2. Correlates of the Current Account Balance-Panel Estimates (1980-2005) -- 3. Unit Root Tests for the FEER-SE Approach -- 4. Unit Root Tests for the CHEER Approach -- 5. Johansen Cointegration Test for the CHEER Approach -- 6. The Relative Performance of Mauritius on Trade Costs -- 7. The Relative Performance of the Mauritius ICT Sector.