[citation needed] The first Bank of Mauritius started operations in 1813 or so, but survived only until 1825.

The financial crisis of 1847 in London resulted in the collapse of the sugar market, and severe losses to both of Mauritius's banks.

The setting up of the Bank of Mauritius marked the beginning of a new phase in the monetary history of Mauritius, with the monetary system moving forward from the stage of 'Sterling Exchange Standard', under which currency was issued in exchange for sterling at a fixed rate of exchange, to that of a 'managed currency' in which the discretionary role of the monetary authority becomes important.

The Bank has been set up as the authority which is responsible for the formulation and execution of monetary policy consistent with stable price conditions.

It also has responsibility for safeguarding the stability and strengthening of the financial system of Mauritius.