Mauritius’ Central Bank Governor, Rama Sithanen, has agreed to resign next week following Prime Minister Navin Ramgoolam’s call for him to step down, in what observers describe as signs of a deepening power struggle within the institution.
In a televised address on Saturday evening, Sithanen said his decision was guided by the need to preserve the stability of the central bank.
“I believe that, in the best interest of the central bank, in the best interest of the country, and for the stability and serenity of the institution, it is the right thing for me to step down,” Sithanen stated.
Earlier in the day, Prime Minister Ramgoolam told reporters that while he did not doubt the governor’s competence, he had urged him to resign “in order for the Bank of Mauritius to regain its serenity.”
“It was clear that Rama Sithanen’s position had become untenable. This situation is unacceptable,” Ramgoolam said, adding that he would appoint a new second deputy governor on Monday and later announce a replacement for Sithanen.
The leadership tussle at the central bank escalated last month when Deputy Governor Gerard Sanspeur resigned on August 29, accusing Sithanen’s son of meddling in sensitive institutional matters, including banking licence approvals, staff recruitment, and tender processes.
Sanspeur, who held the position of second deputy governor, publicly alleged that the governor’s son had attempted to exert influence on internal decisions.
Sithanen, however, dismissed the accusations as baseless, insisting that no decision of the central bank was ever influenced by private exchanges between his son and the deputy governor.
Despite the controversy, Ramgoolam praised Sithanen’s stewardship, noting improvements in key economic indicators. Since the beginning of the year, the Mauritian rupee has appreciated by around 6% against the U.S. dollar, while annual inflation was contained at 3.3% as of August.
Sithanen confirmed that he would meet with the prime minister for what he described as “a fair hearing” before formally stepping down.
