The Governor and the Politician !

A central bank governor needs a degree of reserved communication to maintain credibility, avoid over-promising, and ensure effective monetary policy implementation, as over-communication can lead to "signal extraction problems" and undermine policy credibility.

A central bank's credibility is crucial for its ability to influence economic outcomes. Reserved communication helps ensure that the central bank's actions are perceived as consistent with its stated goals, rather than being seen as reactive or overly influenced by market pressures.

Our Governor is sending the wrong signals- “la pénurie persistante de dollars américains sur le marché local ; la réticence des acteurs économiques a injecter leurs devises dans le circuit “

He is shooting himself in the foot…confirming to the audience that there is a big disconnect between his words and actions.... He is acknowledging the disparateness between his policies and the market situation characterised by a persistent shortage of dollars and yet the MUR is appreciating against the USD in spite of the chronic supply-demand imbalance. As Governor should he not have ensured the MUR reflect its "true" fundamental value rather than playing the politician role of trying to show a MUR that is stronger that what it should be. ?

And this is unbecoming for a governor who should build trust and confidence in the marketplace. His mandate is to control inflation and support the country’s financial and economic stability. This is a technical and economic function, different from the political role of a politician.

Yes, while some reserve is needed, central banks should also strive for transparency and accountability in their communication. This means providing clear and concise explanations of their policy decisions and the rationale behind them-ensuring that , IT IS NOT MORE, NOT LESS.

Dear Governor, it’s better that you stick to your notes and your mandate ; mind you, the market is overly focused to your every word. Being Governor of the CB is indeed distinct from political office-holding and you seem to be a bit confused about your role - the BoM is not MoFED !

N.B: U cannot expect much from our press-Le mythe Sithanen entretenu et pompé par une presse acquise à sa cause !

Paul Lismore

Rattan Chand, Rama Sithanen remains one of the select few chosen by our zourlanus to be over promoted and portrayed as an economic genius. The reality is quite different. He has always been ultra fond of the handful of people who have always controlled the economy of this country. All his policies point to enormous benefits for those who are already super rich...tax exemptions for the few who own most of our land are but one example that make no sense for the economic future of this island.

As for his current functions as Governoer of the BoM: Pa kapav fer narien! Confidentialite! Medine, Omnicane, et lezot bien bien riche ine bien guet moi, sorry mo fami, sorry nou pei....

As long as he continues to be over hyped, over promoted, over praised by zourlanus, esp the Tamil mafia in our press, he will continue to piss over the vast majority of the people.

His soucerres may not like this, but it is the truth.

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Prak Nee

When we listen to Sithanen and other central bank governors (Jerome Powell of the U.S. Federal Reserve and Tiff Mcklem of Canada central bank), we see a big difference in tone, approach and insight. The latter never indulge in politics and they perform absolutely as technocrats managing monetary policy. They don’t go on radio or tv to defend their policies. They make statements before parliamentary committees or to the media only when interest rates are changed. In contrast, Sithanen’s conflicting roles as governor of BOM and chairman of FSC are landing him in a quagmire of contradictions, compounded by his statements on MIC ( as the head of a parent company owning an investment subsidiary). The non-arm’s length relationship between MIC and BOM is creating a veil of opacity around banking and non banking transactions. It’s time for BOM to sever all links to MIC.

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