CBY announces plan to help stabilize Yemeni rial

Aden (Debriefer)
2019-03-24 | Since 1 Year

Central Bank of Yemen in Aden

اضغط هنا لقراءة الخبر بالعربية

The Central Bank of Yemen (CBY) said on Saturday an urgent working plan would be soon implemented in order to help stabilize the local currency, Yemeni rial, sufferingspiral decline.

The plan aims at restoring stability of the rial and covering import needs, said the CBY based in Aden, seat of internationally recognized government. "This is of great importance for improving the country's economy and the citizen's humanitarian and living conditions."

The plan would also rehabilitate the exchange industry,which has been abused by outsiders, according to statement by the CBY.

The Yemeni rial lost more than three quarters of its value against the US dollar, leading to price hike as many Yemenis unable to afford food and other basic commodities, particularlythe unpaid government employees.

Last Wednesday, Yemeni President AbdRabbu Mansour Hadi appointed Hafiz Me'iad as CBY governor, in place of Mohamed Zimam, after months of economic instability.

The third CBY governor throughout two years and a half, Me'iad, an economist close to former president Saleh, was appointed as Hadi's advisor eight months ago.

The CBY warned that exchangersnot in compliance with law and rules would be dealt with strictly, wherever they were.

Under the new plan, the CBY will hold regular meetings with managing boards of "all exchange firms working in Yemen," to address violations committed in the last period by every firm, their respective working plans and problems they face in restoring credibility.

Last December, the CBY set the official exchange rate, with one dollar for 440 rials. The current market rate, however, is some 600 rials for one US$.

Yemen, the poorest Arabian Peninsula country, imports more than 90 percent of its food.

The exchange market in Yemen has witnessed many new firms working under no permission from the CBY.

Since Hadi government decided to move the CBY from Sana'a to Aden in September 2016, the financial situation has been increasingly in a mess.

Yemen has been racked by an armed conflict that broke out after the Iranian-backed Houthis had ousted the internationally recognized government late in 2014.

The conflict escalated after a Saudi-led coalition intervened militarily in the country in March 2015 to reinstate the government of President Hadi, triggering the world's worst humanitarian crisis, according to the UN.

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