Under the chairmanship of Mr. Cheikh El Kebir Moulaye Taher, Governor of the Central Bank of Mauritania, the Monetary Policy Council of the Central Bank of Mauritania held a meeting on Friday, May 28, 2021. An opportunity to discuss the country's economic situation .Analysis of recent developments in the economic situation reveals that internationally, the global economic recovery remains dependent on the evolution of the Covid-19 pandemic. At the national level, economic activity was marked, during the first quarter of 2021, by the increase in iron production and a good dynamic in the services sector, in particular telecommunications. The other sectors, in particular those of gold, copper, fishing and construction "Building and public works", are still showing a slump linked to the effects of the COVID-19 pandemic.

On the monetary front, the situation at the end of March 2021 is characterized by growth in the money supply of 14.4%, year-on-year, supported by the increase in net foreign assets of 65.8% and by net domestic assets of 1.3%. For central bank liquidity recovery operations, the weighted average rate stands at 0.4% in the first quarter of 2021 instead of 2.2% in the fourth quarter of 2020. The monthly weighted average rate of Treasury bills s stood at 2.46% in March 2021 instead of 2.97% in December 2020. As for the interbank rate, it remained almost stable, standing at 5.6% in the first quarter of 2021 instead of 5.5 % on the fourth 2020.

The average borrowing rate applied by banks to customers also fell slightly during the 1st quarter, falling from 11.14% in December 2020 to 10.88%. As for inflation, it fell from 1.8% year-on-year in December 2020 to 2.3% in March 2021. On an annual average, the inflation rate fell from 2.4% to 2.2% over the same period. The national economy is expected to register a recovery in economic activity with growth projected at 3.1% in 2021 and inflation expected to remain below 3%.