DHAKA: Central African Republic`s interim President Michel Djotodia has resigned at a regional summit aimed at ending violence that has engulfed the country.
PM Nicolas Tiengaye also resigned at the meeting in Chad.
Thousands of people took to the streets in CAR`s capital, Bangui, most of them celebrating the news.
Mr Djotodia, CAR`s first Muslim leader, seized power last year. Since then 20% of the population have fled fighting between Christian and Muslim militias.
The UN has warned of an impending humanitarian disaster.
French troops stand guard as anti-Seleka protesters demonstrate following the resignation of the president in Bangui Sporadic gunfire rang out in Bangui after curfew on Friday as French forces reportedly fired warning shots to prevent clashes between rival fighters in one neighbourhood
Since December and the arrival of more regional peacekeepers and French troops, 1,000 people have died in sectarian clashes.
Many villages are deserted and in the past month the number of those who have fled their homes has doubled - including almost half of those living in the capital, Bangui.
Following the announcement from Chad, there were jubilant scenes in Bangui.
Carine Gbegbe, who has been living in a displacement camp, told the Associated Press news agency: "Finally we are free. We are going to return home at last."
Those celebrating Mr Djotodia`s removal were largely Christians, the BBC`s Paul Wood reports from Bangui, while Muslims largely stayed at home.
The main demand of Mr Djotodia`s opponents had been for him to step down, and many Christians now want to go back to the way things were with their Muslim neighbours, our correspondent says.
However, there were exchanges of gunfire on Friday between rival militias and it is too early to say the violence is at an end, he adds.
French tanks were quickly deployed around the presidential palace.
French Defence Minister Jean-Yves Le Drian called for a replacement for Mr Djotodia "as soon as possible".
BDST: 0938 HRS, JAN 11, 2014
RS