“Untenable” Situation: PM Forces Out Bank Governor Amid Stability Fears

The Governor of the Bank of Mauritius (BoM), Rama Sithanen, has been asked to “step down” by Prime Minister Navin Ramgoolam. The decision was made to ensure the central bank can “function in serenity.”

Ramgoolam, speaking at a press conference on Saturday, 20 September, described the situation at the BoM as “regrettable.”

He stated that if immediate action were not taken, there would be an impact on the bank’s functions, and the situation was being monitored by external bodies including Moody’s, the World Bank, and the International Monetary Fund (IMF).

The Prime Minister declared that it was “obvious” that for “some days,” the governor’s position had become “untenable.”

He called what was happening “unacceptable” and said he had “unfortunately” requested Sithanen to “step down” to avoid “other external factors” from being added.

Ramgoolam clarified that he was not questioning Rama Sithanen’s competence, highlighting that he had “succeeded in stabilising the rupee.”

When asked if Sithanen had resigned, Ramgoolam said, “He has asked to meet me.”

The Prime Minister also announced that he would name a new governor and a Second Deputy Governor for the Bank of Mauritius on Monday, 22 September.

Source: Defi Media