Yemen Monitor / Newsroom:
The Governor of the Central Bank of Yemen (CBY), Ahmed Ahmed Ghalib, has denied the accuracy of reports circulating regarding plans to adjust exchange rates. He emphasized that the Bank will not take any steps that do not serve the public interest or lack clear economic justification and precautionary monetary policy objectives.
This statement came during an expanded meeting held Tuesday morning at the Bank’s headquarters in the interim capital, Aden. The meeting included leaders of Islamic, commercial, and microfinance banks—participating both in person and via video conference—to discuss recent monetary and banking developments.
The meeting addressed current trends in the foreign exchange market, specifically the movement of foreign currencies against the national currency. It also touched upon the limited supply of local liquidity despite high demand from citizens, which attendees viewed as an indicator of growing confidence in the measures adopted by the Central Bank to regulate the market and enhance stability.
The Governor reviewed a series of measures taken by the Bank to address existing imbalances. He stressed the pivotal role banks play in the success of these measures through strict adherence to banking regulations and increased coordination to support exchange rate stability and curb speculation.
Additionally, the meeting discussed proposals to improve the efficiency of current policies and protect the banking sector from potential repercussions, thereby consolidating monetary stability and maintaining price levels.
In a related context, the Governor held a separate meeting with representatives of the Money Changers Association and major exchange companies. He underscored the necessity of complying with regulations governing currency buy-and-sell operations, enhancing market transparency, and countering any practices that might harm monetary stability.
Participants in both meetings agreed to continue joint coordination and intensify efforts to protect the banking system. The meetings were attended by the Undersecretary for the Banking Supervision Sector, the Director General of Exchange Company Inspections, and several Central Bank specialists.
