Economic team sacked as prices rise, currency falls

President Maaouiya Ould Taya has sacked the entire economic team of his government following a sharp rise in prices and a big fall in the value of Mauritania's currency, the ouguiya, over the past two months. The cabinet reshuffle, which featured the replacement of the ministers of finance, economic affairs and trade, was announced by state radio on Sunday. It was followed by the sacking of the central bank chairman on Monday. The other highlight of the reshuffle, was the replacement of the interior minister, who is responsible for internal security in this desert country of 2.5 million people. Altogether, nine new ministers were appointed. It was the first major change in Mauritania's government line-up since Ould Taya was re-elected for a further six-year term in a controversial election last November. The opposition claimed the poll was riddled by fraud. Ould Taya's main challenger, former president Mohamed Khouna Ould Haidallah, was arrested, charged with plotting a coup and deprived of his political rights for five years immediately afterwards. Mauritania relies heavily on imported food, fuel and manufactured goods, but prices have gone through the roof over the past two months following a 30 percent depreciation of the ouguiya on the parallel market, since the end of May. Although the official rate of exchange has remained steady at 318 per euro, the parallel exchange rate, which is widely used to finance private sector imports, has slumped from 318 to 430 since then. The euro, rather than the dollar, is the currency used for most Mauritanian imports. The timing of the cabinet resuffle came as a surprise, just before the government goes into its annual summer recesss for the month of August. No official reason was given for the government changes, although on 15 July, Ould Taya complained sharply in a keynote speech that his own administration “does not execute the orders it receives.” The president, a formal army colonel, has ruled this staunchly Islamic country with a rod of iron since he came to power in a coup 20 years ago. Mohamed Sidya Ould Mohamed Khaled, the former head of treasury at the finance ministry, takes over as Finance Minister, while Sidi Ould Didi, a long-serving Director of State Budget, Sidi Ould Didi, becomes Minister of Economic Affairs and Development. The new central bank governor is Zeine Ould Zeidane, who was formerly an adviser to the president. Mohamed Ghaly Ould Cherif Ahmed, a former teacher who formerly served as Commercial Director at the port of Nouakchott, takes over as Interior Minister. Political analysts in Mauritania said he appeared to have been chosen as a consensus representative of the Laghlal ethnic group, which lives near the remote eastern border with Mali which is plagued by banditryand smuggling, rather than for his personal qualifications or political experience. His predecessor as Interior Minister, Kaba Ould Elewa has been named president of the Supreme Court. He was appointed to this key post at a time when the government is preparing to try 123 people accused of taking part in a failed coup against Ould Taya in June last year.