(Bloomberg) — Mauritian Prime Minister Navinchandra Ramgoolam fired a deputy governor at the central bank, a local news website reported, following weeks of tension at the helm of the monetary authority.
Ramgoolam removed Gérard Sanspeur from his post before a scheduled cabinet meeting on Friday, Port Louis-based lexpress.mu said, without specifying where it got the information. Earlier this week, the premier confirmed reports that Rama Krishna Sithanen, the bank’s governor, and Sanspeur were at loggerheads — a situation he said was unacceptable and would be addressed.
The rupee strengthened as much as 0.8% against the US dollar on Friday and traded 0.6% higher at 45.9080 by 12:37 p.m. in Port Louis, the capital.
“I do not anticipate any major impact on the rupee as the Mauritian market is not that volatile,” with Friday’s move in keeping with recent trading patterns, said Cédric Béguier, head of investment strategy at financial services group AXYS.
Sanspeur and a central bank spokesperson didn’t respond to a call and text message seeking comment. Sithanen and Sanspeur are scheduled to hold separate media briefings later on Friday.
Deputy Prime Minister Paul Bérenger has voiced concern about Sithanen simultaneously chairing the Financial Services Commission, the regulator for non-banking activities, lexpress.mu reported. Bérenger also expressed dissatisfaction with the governor’s management of the Mauritius Investment Corp., a central bank subsidiary.
Sithanen, who began his three-year term as governor in November 2024, previously served as finance minister from 2005 to 2010 during one of Ramgoolam’s previous tenures as prime minister.
Under his current stewardship, the bank has hiked interest rates by 50 basis points to quell inflation, improve foreign-currency liquidity and stabilized the currency.
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