Madar (Nouakchott) - The Professional Association of Banks of Mauritania has "categorically" denied any shortage of banknotes in the Mauritanian financial market, saying the entire banking network is being supplied with cash "normally", according to a statement dated Friday, 6 November.
The association said some media outlets and social networks had circulated reports of an alleged banknote shortage, claiming that the Central Bank of Mauritania was no longer guaranteeing cash supplies to banks, which it described as "baseless allegations".
According to the statement, normal supply covers banks' head offices, central and regional branches and counters, as well as deposit and withdrawal points linked to mobile banking services, while the Central Bank continues to "fully" carry out its role of issuing banknotes and withdrawing them from circulation, within the applicable regulatory limits.
The association said liquidity in the banking system has reached "an unprecedented historic level", in a message meant to reassure the public, customers and partners.
It said cash swaps between banks are "a normal practice" in Mauritania as elsewhere, and are part of preparations for a reform jointly decided by the Central Bank and the banks: the creation of an independent cash processing centre (Cash Center) to sort and distribute banknotes in line with international best practice.
The association urged the press and social media users to check information with authorised sources before publishing, saying rumours undermine public confidence and the image of the financial sector, and said it reserves the right to take legal action to protect the reputation of banks and their customers' interests.
Local press reports had described this week difficulties for banks in supplying large cash amounts, as the Central Bank raised its key interest rate to 7.25% and the reserve requirement ratio to 15% as part of measures to curb inflation.
