Country Report Comoros March 2011

Economic policy: The central bank awaits a new governor

Certainly, the economic policymaking environment is unlikely to be improved by the failure to appoint a new governor of the central bank, Banque centrale des Comores (BCC). The five-year mandate of the previous governor, Amadi Abdul Bastoi, expired in September 2010, but although the outgoing president, Ahmed Abdallah Sambi, submitted a shortlist of three candidates to the BCC-the finance minister, Mohamed Bacar Dossar; the former general secretary of the ministry of finance, Ahamadi Yahaya; and Ibrahim Ben Ali, who was the BCC governor under a previous president, Azali Assoumane-none was selected. Instead, the BCC board has decided to choose a new governor at its next meeting, in June 2011.

It would appear that the BCC wants to defer its decision until after the inauguration of Ikililou Dhoinine as Union president in May, fuelling speculation that Mr Dhoinine will want to appoint an official from Mohéli. Although this may well help to minimise friction between the president and the BCC governor, it is likely to alarm the other island governments-suggesting that the transfer of power to Mohéli will do little to address the impact of mutual political mistrust on policymaking.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
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