Yemen Monitor /Reports Unit:
The governor of the Central Bank in Aden, Ahmed Al-Maabqi, admitted a few days ago that the bank is unable to fulfill its duties in regulating currency markets, halting the continuous depreciation of the national currency, controlling revenues, and managing financial operations. He attributed this failure to the lack of support and coordination from the Presidential Leadership Council and the government, emphasizing that proper financial management requires their active involvement.
In an interview with journalist Fathi Bin Lazraq, Al-Maabaqi explained that over 147 government and revenue-generating institutions do not deposit their revenues into the Central Bank. Additionally, he highlighted the halt of oil exports, the absence of an official government budget since 2019, and the fact that state resources are not fully reaching the bank, with the majority going to exchange shops or being spent outside official frameworks without oversight.
Al-Maabqi stated that only $225 million remains from the Saudi deposit, and that the Central Bank cannot access or use it without the depositor’s approval. The funds transferred to the bank’s account were used to cover salaries and essential government expenses. This means relying on unsustainable resources is no longer feasible. He also hinted at an imminent increase in customs duties through the liberalization of the customs exchange rate.
Journalists and activists believe these statements could exacerbate the suffering of the people as they reveal the disintegration within the legitimate government, opening the door for merchants and currency manipulators to further exploit the situation.
“This Will Open a Wide Door for Manipulators”
Regarding this issue, journalist and community activist Makeen Al-Awjari states, “Most state institutions today only deposit crumbs into the Central Bank, and this, without a doubt, significantly impacts currency stability. This, in turn, negatively affects the Yemeni society, which is currently experiencing the bitterness of poverty and deprivation.”
Al-Awjari added to “Yemen Monitor” that the Central Bank Governor’s statements “may open a wide door for currency manipulators to further manipulate, because these statements confirm to them that there is no solution to this crisis. Consequently, they will be safe from loss and will continue their manipulation, for which the helpless people will pay the price.”
He continued, “Traders may exploit this situation for further price deregulation and selling as they please, because they realize there is no clear effort from the Presidential Council to address the economic collapse. Thus, matters are heading for the worse, and everyone is exploiting the situation for more gain.”
He further stated, “The Presidential Council must fully realize that it is throwing its people into ruin. Today, there is no successful education, no good health, and crises are accumulating on citizens, almost suffocating them, or indeed, having already suffocated and destroyed some of them.”
Al-Awjari questioned, “When will the Presidential Council realize that one of its tasks is to improve the living conditions of citizens? And when will the government awaken from its deep slumber and realize the reality of the countless tragedies that citizens are living today?”
He concluded, “If there had been a sincere intention from the Presidential Council and the legitimate government to reform the situation, it would have been reformed sooner or later, and we would not have reached where we are now. If the Presidential Council had a real intention, it would have stood with the Central Bank the day it announced not dealing with the six banks, but it let the bank down… What we are in today is a result of that betrayal that happened yesterday.”
A State of Financial Chaos
In a related commentary, economic researcher Waheed Al-Fudai described the governor’s interview with Fathi Bin Lazraq as a clear exposé of the current financial chaos and the deep institutional contradictions within the government.
“The governor’s statement that the Central Bank is fighting ‘a difficult and complex war but refuses to surrender’ is not exaggeration or rhetorical flair,” Al-Fudai said. “It reflects the real struggle of a financial institution tasked with addressing structural disruptions outside its scope, while being blamed daily by the markets, the public, and the government alike.”
He added, “The Central Bank is expected to regulate liquidity, stabilize the exchange rate, finance public obligations, and counter speculation. Yet it is not given the necessary financial tools, political support, or authority over revenue sources—turning its job into a tightrope walk over a deep financial abyss.”
Al-Fudai emphasized that the admission that the state has operated without an official budget since 2019 reveals an unprecedented state of financial disorder. “Such chaos strips any monetary authority of its traditional and preemptive roles. The absence of a budget means the loss of strategic direction in setting priorities and deprives the bank of a crucial tool for managing financial expectations—forcing it to improvise in covering obligations it had no hand in creating.”
He continued, “The claim that only 25% of public revenues reach the bank, and that more than 147 revenue-generating entities operate without real oversight, indicates that the Central Bank is merely a front taking the blame for financial burdens it did not create. This structural imbalance renders monetary policy ineffective, making any reform attempt seem like a desperate effort in a dysfunctional, dual financial system where many operate outside legal frameworks.”
Al-Fudai also pointed to the issue of currency exchange shops, noting that while some measures were taken in Aden and nearby areas, authorities remain unable to control markets elsewhere. “This highlights the fragility of monetary oversight in a country dominated by an inflated informal economy. Exchange outlets have become tools of speculation and manipulation, even playgrounds for external actors like the Houthi group, which the governor accused of orchestrating speculative operations using large sums of local currency in Aden.”
He further noted, “The fact that only $225 million remains of the Saudi deposit—and that it cannot be accessed without the depositor’s approval—makes it clear that the tools for monetary intervention are nearly depleted. Relying on external aid—especially when conditional and non-renewable—is not a long-term solution, but a short-term painkiller unable to keep up with market demands. This reality compels the state to urgently seek sustainable internal resources.”
The People Are the Only Victims
Meanwhile, media activist Abdul Hamid Al-Mujaidi said, “The people continue to bear the brunt of ongoing crises caused by the negligence and disregard of the political leadership toward their daily suffering.”
Speaking to Yemen Monitor, Al-Mujaidi remarked, “Al-Maabqi’s statements have crushed the last remaining hopes among the people for any improvement in economic or living conditions. The Central Bank and foreign deposits were the last threads of hope people held on to, believing the future might still hold something better.”
He added, “From the governor’s statements that the Bank needs support from the Presidential Council, one must ask—why doesn’t the Council support the Central Bank? Why isn’t there a unified and collaborative effort among state leaders to address this major crisis?”
Al-Mujaidi concluded, “The Presidential Council and legitimate government must feel a sense of responsibility toward their people. Such responsibility should push them to act in order to save the public from total collapse. The people today are on the brink of famine—or rather, are already living in it—and conditions are worsening by the day.”
He warned, “The people are the ultimate victims. They will pay the price for this deadly silence from the leadership. But the political leadership still has the power to turn the situation around—by enforcing strict measures to restart oil exports, or at the very least, limit the rampant manipulation in the currency exchange market.”
