Yemen Monitor / Aden / Exclusive:
The Yemeni Central Bank and the Import Regulation Committee in Aden have tightened pressure on merchants and businesspeople, demanding full compliance with the regulatory mechanisms of the National Committee for Regulating and Financing Imports.
This came during a joint meeting held at the Yemeni Central Bank building in the temporary capital, Aden, on Sunday morning. Chaired by Mansour Rajih, Deputy Governor of the Central Bank for Banking Supervision, the meeting included the executive team of the National Committee for Regulating and Financing Imports, representatives from the Federation of Chambers of Commerce and Industry and the private sector, as well as managers of the commercial and Islamic banks participating in the executive mechanism.
The meeting focused on reviewing the progress of implementing the regulatory mechanisms and controls approved by the National Committee, which aim to regulate the supply and demand of foreign currency. This directly contributes to achieving price stability and regulating the monetary situation in the market.
Attendees particularly emphasized the critical importance of full compliance with technical procedures and the disciplined, real-time depositing of commercial sector sales revenues into their bank accounts. The meeting considered this measure one of the most fundamental regulatory pillars of the National Committee’s operational mechanism, stressing that it aims to return the cash cycle to banking channels, enable banks to perform their vital economic role, and support the Central Bank’s monetary policy and financial stability objectives.
The meeting also affirmed the necessity of enhancing compliance procedures in the areas of anti-money laundering and combating the financing of terrorism, and the immediate updating of international sanctions lists. These steps aim to protect the Yemeni banking and commercial sector and enhance its ability to access the global financial system, ensuring the continued flow of essential and necessary supplies into the country.
This tightening of requirements for merchants to deposit their revenues into banks occurs within the context of the ongoing efforts by the Yemeni Central Bank in Aden (affiliated with the internationally recognized government) to control monetary chaos and the depreciation of the Yemeni rial, particularly against the US dollar, which has seen sharp fluctuations in recent months, negatively impacting citizens’ purchasing power.
This regulatory mechanism, approved by the National Committee for Regulating and Financing Imports, primarily aims to:
- Reduce cash circulation outside official channels (the cash cycle): Withdrawing the cash mass from the black market into banks.
- Increase banks’ foreign currency reserves: By regulating the import processes of essential goods and financing them at specified rates.
- Combat speculation: By making banks the primary channel for obtaining foreign currency for import purposes.
The Central Bank in Aden faces immense challenges, most notably the currency division between government-controlled areas and areas under Houthi control, in addition to the halt in oil exports – the main source of foreign currency – due to attacks, which increases pressure on monetary stability.
