The Yemeni government temporarily suspends internal transfer of funds and approves measures to prevent dollar smuggling

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The internationally recognized Yemeni government decided on Sunday to temporarily stop transfers through internal financial networks, and also approved a package of urgent economic measures to stop the sharp deterioration of the currency.

The Yemeni News Agency said that a joint meeting of the government and the Central Bank of Yemen headed by Prime Minister Maeen Abdul Malik in Aden today, Sunday, affirmed the government’s support for the measures taken by the Central Bank to stop licenses to engage in money exchange business for a number of companies and exchange facilities that are not committed to the law regulating exchange business.

The meeting stressed the importance of taking all measures aimed at preventing imbalances and speculation in the exchange rate and harming stability in the market.

He also stressed the importance of the field follow-up by the Central Bank for the implementation and evaluation of the situation on an ongoing basis, and to work on the strict application of the law of exchange companies, and the procedures included in the examination and auditing of financial operations on a timely basis.

On Saturday evening, the Central Bank of Yemen officially announced the suspension of 54 companies and exchange shops in the southern port city of Aden and the withdrawal of licenses to practice their activities for not complying with the law regulating exchange business and the bank’s instructions.

The Central Yemeni suspension of this large number of exchange companies comes at a time when the value of the Yemeni currency continued its sharp and record decline to reach the lowest level ever against the dollar and foreign currencies in the city of Aden, where the price of the dollar approached the barrier of 1400 riyals, amid an unprecedented wave of high prices and high prices Food commodities in Aden and the southern governorates.

The agency stated that the meeting also approved the implementation of a package of parallel measures, including rationalizing the import bill and regulating the demand for hard currency to cover import operations for basic needs.

The meeting also directed the Ministry of Industry and Trade to submit a list of the proposed luxury goods whose import could be suspended to prevent the depletion of hard currency.

The meeting instructed the ministries and the competent authorities to tighten procedures at the ports to prevent foreign currency smuggling operations, to take all legal measures in this regard, and to limit the transfer of funds abroad according to a mechanism approved by the Central Bank, and to assist commercial banks in accordance with disclosure and compliance standards.

Traders say that the speed of political and military developments in Yemen has led to an unprecedented drop in the riyal exchange rate by about 150 riyals against the dollar in just ten days.

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A major collapse of the Yemeni riyal and the central bank takes urgent measures in Aden

Money changers told “Reuters” that the Yemeni riyal rose to 1,325 riyals per dollar for purchase, 1,375 riyals for sale, from 1,350 riyals to the dollar for purchase, and 1,380 riyals for sale on Saturday evening, compared to 1,320 riyals on Thursday and about 1,210 riyals per dollar 10 days ago.

Source: agencies





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