New Mauritius government sacks long-serving central bank governor

New Mauritius government sacks long-serving central bank governor
Navin Ramgoolam (C), prime minister of Mauritius, leaves the counting center of Calesbasses, after first official partial results for parliamentary pools were released by the Electoral Commission, on December 11, 2014.

PORT LOUIS - Mauritius central bank governor on Saturday said he had been sacked by the Indian Ocean island's new government after seven years in charge of the bank, but hinted that he may appeal the move. "My contract has been terminated with immediate effect. I have received a letter from the secretary of the President of the Republic," Bank of Mauritius Governor Rundheersing Bheenick told Reuters over the phone.

Bheenick, who received the dismissal letter on Friday, was handed a third three-year term by the bank in 2013. It was not immediately clear why he was sacked and there was no clear front runner to replace him at the bank.

Bheenick said he would now consult his lawyers about whether the government, elected earlier this month, had the constitutional right to sack the central bank governor.

After taking up his post in 2007, Bheenick managed to ease rising inflationary pressures, introduced an independent Monetary Policy Committee and helped develop an Islamic finance industry. "Records speak of my achievements at the bank" he said.

Mauritius' economy, which has slowly been recovering from the global financial crisis which hurt tourist arrivals, particularly from Europe, is forecast to grow 3.5 per cent in 2014, up from 3.2 per cent last year.

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