CBY pauses money exchange at private firms to stop Yemeni rial decline

2020-09-10 | Since 3 Week

Yemeni rial keeps on depreciating in government-held areas

Aden (Debriefer) - The Yemeni rial kept on declining against foreign moneys in Aden and other areas under the official government control, where one US dollar is exchanged for 810 rials, recording the lowest rate since 2018.

In an attempt to halt the national currency depreciation, the Aden-based Central Bank of Yemen (CBY) on Wednesday instructed all exchanging firms to temporarily pause purchasing and selling foreign moneys, banking sources told Debriefer.

"Halting the speculations and limiting the big sales to the CBY would help boost foreign cash's availability at the bank, stabilize exchange market and control the Yemeni rial's free fall," the sources added.

In response to the CBY instructions, Aden exchangers union (AEU) issued a circular asking all exchange firms to suspend foreign cash purchases, excepting for small livelihood needs.

"By assuming such transactions, the CBY would help correct its monetary policies, through being provided with hard moneys – the US dollar and Saudi real in particular – and minimizing the speculations that harmed the local currency," AEU spokesman said.

The bulk of foreign moneys will be withdrawn from the market and deposited into the CBY in order to reduce speculations and control exchange rates, Sobhi BaGhafar added.

Follow us on twitter

Follow us on Telegram