After a decade at the helm the governor of New Zealand's Reserve bank, Alan Bollard, on Monday announced he is to step down in September after deciding not to seek a third term in office.

The move comes as the country is preparing for a large-scale privatisation programme that involves the sale of stakes in several state-owned corporations including Genesis, Solid Energy, Mighty River Power and Meridian.

Bollard leaves as New Zealand is struggling with slow economic growth, raised funding costs for its banks and a strong domestic currency.

The focus will now be on who will succeed Bollard to take on the most powerful post in New Zealand's economy. Former central bank deputy Murray Sherwin, Reserve Bank chairman Arthur Grimes and Reserve Bank deputy governor Grant Spencer are all in the running.