DEFINITION of 'SCR'
In foreign exchange markets, SCR is the abbreviation for the Seychellois rupee, the currency of the island nation of Seychelles. One rupee breaks down into 100 cents, and the Central Bank of Seychelles controls the flow of the country's monetary supply. As of April 2016, 1 rupee is approximately 8 cents in American currency, or 13 rupees for $1.
BREAKING DOWN 'SCR'
Seychellois coins come in values of 1, 5, 10 and 25 cents, and then 1 and 5 rupees. Paper currency includes denominations of 10, 25, 50, 100 and 500 rupees. The colorful currency features wildlife that call the islands or the surrounding ocean home. The 50-rupee note shows a tuna, an aquatic bird and tropical fish. The 100-rupee note depicts a tortoise, sea gulls and more fish.
History of the Seychellois Rupee
The small island nation first introduced rupees as the currency in 1914 alongside the Mauritian rupee, after Mauritius replaced the British pound as its currency. Back then, the country only issued banknotes in denominations of 50 cents and then 1, 5 and 10 rupees. Coins came into use in 1939. The country tightly regulated its money supply in worldwide markets from 1976 to 2008 before openly trading its currency on foreign exchange markets. The Seychellois rupee lost 43% of its value when it first hit the open market on Nov. 2, 2008.
Economy of Seychelles
The island country consists of 155 islands, and Seychelles covers a land area about 2.5 times the size of Washington, D.C. Around 90% of the nation's 92,000 inhabitants live on Mahe, the largest island in the chain. Major economic activities include tourism, fishing, coconut harvesting and growing vanilla beans. Agricultural products include sweet potatoes, bananas and cassava. Most of the islands are made of granite and are unsuitable for farming.
The services sector, including tourism, produces 82.4% of the nation's annual gross domestic product, which brings in about $2.5 billion in economic activity. Tourism employs around 30% of the islands' 40,000 laborers, and tourism brings in 70% of the nation's hard currency earnings. Due to strong tourism, the GDP grew 4.3% in 2015 as part of an overall growth pattern since an economic downturn in 2008.
In 2008, Seychelles defaulted on $230 million in loans after the country depleted its foreign exchange reserves, which led to an economic crisis and several reforms. Five years later, the International Monetary Fund stated Seychelles had transitioned to a market-based economy. Foreign investment helped refurbish hotels in Seychelles, and the economy expanded farming, fishing and small-scale manufacturing as a way to diversify the country's GDP.