The Mauritanian government returned to its weekly meetings, on Wednesday, after a three-week hiatus due to the holiday of President Mohamed Ould Sheikh Ghazouani and half of the government members, most of whom spent inside the country as part of a plan to revive domestic tourism.
A semi-official source confirmed to Asharq Al-Awsat that the government held its first meeting - since the end of the official holiday - this morning at the presidential palace, and the meeting continued for several hours “without taking any special measures,” according to the source’s expression.
The last meeting held by the Mauritanian government was on August 27, which is the longest government cessation that Mauritania has ever known, despite the opposition’s criticism of this cessation. Because it coincided with what the opposition says is a crisis in the provision of electricity, water, and some basic services in the country.
The return of government activity also coincides with a heated political debate about amending the constitution, and the demand for a third mission for President Mohamed Ould Sheikh Ghazouani, which has reached the corridors of the ruling “Insaf” party, while the opposition continues to strongly reject it.
In this context, the Political Bureau of the ruling “Insaf” Party called for work on “reforms capable of achieving the demands expressed by the party’s elected representatives, related to adhering to the person of President Mohamed Ould Sheikh Ghazouani,” according to a statement issued by the office at the conclusion of the third regular session of the Political Bureau, last Monday.
The Political Bureau stressed that it is the party’s duty to work to “study and meet the demands expressed by elected officials, activists, and executives during recent field visits, related to adhering to the person of President Mohamed Ould Ghazouani, and pushing for the reforms necessary to achieve this.”
The party had sent delegations into the country in recent weeks, raising demands for the need to amend the constitution in order to allow President Ould Ghazouani to run for a third presidential term, in presidential elections expected in 2029.
Ould Ghazouani (69 years old) has ruled Mauritania since 2019, and was re-elected in 2024 for a second presidential term, the last under the country’s current constitution, which limits the number of presidential terms to only two.
The National Rally for Reform and Development (Tawasul) party, which is the largest and most represented opposition party in Parliament, said that calling for a third presidential term in conjunction with preparations for the national dialogue “sends extremely negative political messages,” warning against “disturbing the course of the dialogue and undermining the fragile climate of trust between the parties involved in preparing for it.”
The party renewed its rejection of any attempt to circumvent the constitutional provisions related to presidential terms, or reinterpret them in a way that serves the extension of power, calling on all political and national forces to assume their responsibility in protecting the constitution and defending the principle of peaceful transfer of power through peaceful democratic means.
The party strongly criticized what was stated in the statement of the political bureau of the ruling “Insaf” Party, rejecting what it said was “an attempt to market the call for the third mission in the form of popular demands or necessary reforms,” noting that this marketing “does not make violating the constitutional text a reform.”
The opposition party stressed that stability “is not built on the survival of people, nor is it linked to the continuation of their approach, but rather on the strength of institutions and respect for the constitution and the rule of law,” stressing that “what Mauritania needs at this stage is to direct the political efforts of all national forces, especially the ruling authority, towards addressing the living, economic and social conditions of citizens, improving deteriorating basic services, and strengthening the state of institutions and the law.”
The Sudanese Minister of Finance, Jibril Ibrahim, attributed the rapid decline in the exchange rate of the pound against foreign currencies to the high demand for foreign exchange and the increase in the volume of imports compared to exports. He stressed that the deterioration of the exchange rate of the national currency had a direct impact on the livelihood of citizens, especially those with limited incomes.
Ibrahim's statements come at a time when the exchange rate of the Sudanese pound exceeded the barrier of 8,000 against the US dollar in the parallel market, according to traders, amid sharp fluctuations in prices during one day, and a scarcity in the supply of foreign currencies, while traders in the currency market expected the dollar exchange rate to reach 10,000 pounds within days.
Ibrahim said in a statement to Asharq Al-Awsat that the increase in the volume of imports relative to exports represents one of the most important reasons for the rise in the dollar, explaining that foreign exchange prices are determined by the levels of supply and demand, in light of the high demand for foreign exchange.
The minister linked “part of the increased demand to developments in the Gulf region, the Strait of Hormuz, and Bab al-Mandab, and what accompanied them,” and pointed to “the rise in oil prices and the doubling of transportation and insurance costs, which raises the import bill and increases the need for foreign currencies.”
The gap between the parallel market and the prices announced in banks widened, despite the increases made by some banks in exchange rates. The Nile Bank recorded 6,900 pounds for buying dollars, and 6,951.75 pounds for selling, while the parallel market price remained much higher than that.
A currency trader working in central Khartoum, who identified himself with his initials, “J. In a special statement to Asharq Al-Awsat, the price of the dollar rose to 10,000 pounds within days, indicating the high demand for foreign currencies in general in the country. He said: “The supply of foreign currencies is very small,” indicating that some traders have stopped trading at prevailing prices.
The parallel market is witnessing a state of anticipation with the significant acceleration in prices, as the reluctance of some foreign currency holders to sell leads to a reduction in supply, at a time when demand is increasing, adding more pressure on the pound.
The Minister of Finance denied that the government resorted to buying dollars from the parallel market to cover its foreign exchange needs, and said, “The government depends on buying gold and exporting it to obtain foreign currencies.”
Ibrahim said: “The government buys gold and exports it to obtain currencies, and it cannot buy from the parallel market, and it knows the seriousness of this matter.”
Gold is one of the most important sources of foreign exchange that the authorities rely on, at a time when the government seeks to increase foreign currency resources through official channels and limit the leakage of export proceeds into the parallel market.
The Minister of Finance pointed to other factors, which he said affect the exchange rate of the pound, including “the circulation of the national currency in areas under the control” of the Rapid Support Forces.
The wave of decline in the pound comes in light of a deep economic crisis caused by the ongoing war since April 2023, and the accompanying decline in production, the disruption of economic sectors, and damage to infrastructure, supply chains, and trade.
World Bank estimates indicate a contraction in Sudan's real GDP by about 29.4 percent during 2023, and by an additional 14 percent in 2024. While state revenues fell from about 10 percent of GDP before the war, to less than 5 percent during the years 2024 and 2025, the war, the decline in the value of the pound, high production and transportation costs, and market turmoil led to significant inflationary pressures.
World Bank estimates indicate that the inflation rate reached about 170 percent on an annual basis during 2024, driven by rising food, housing, and transportation prices and disruption of supply chains.
The rise in foreign currencies is directly reflected in the prices of fuel, medicines, imported goods and production inputs, before its impact is transmitted to the prices of local goods and services.
The impact becomes more severe on those with limited incomes and workers who receive their wages in pounds, as the continued rise in prices leads to a decline in the real value of incomes and savings, at a time when the World Bank estimates that the proportion of the population living in extreme poverty will rise to about 59 percent during 2025.
Ibrahim said: “The government has taken measures to improve the economic situation, but it needs some time to show its positive effects on the citizens and the country.”
He referred to “arrangements to raise the salaries of workers in the country during the coming period,” stressing the government’s interest in increasing production, especially in the agricultural sector, as it is one of the gateways to increasing exports and providing foreign exchange resources.
The “National Committee for Economic Management” had stressed, in its regular meeting with the Council of Ministers, the necessity of improving and increasing production and productivity in the agricultural, livestock and other sectors, and working to “develop and modernize the infrastructure for Sudanese exports, in addition to encouraging manufacturing industries that add value to exported products.”
The continued widening of the gap between bank rates and the parallel market means more pressure on official channels for obtaining foreign currencies, while any new rise in the dollar threatens an additional wave of commodity price increases and the erosion of citizens’ purchasing power.
