Yemen Monitor / Aden / Exclusive:
The Yemeni Cabinet has issued a decision strictly prohibiting the use of foreign currencies in all commercial and service transactions, as well as financial contracts within the country, requiring that all dealings be conducted exclusively in Yemeni rials.
According to the decision, which Yemen Monitor reviewed, the aim is to strengthen the stability of the national currency and maintain the exchange rate of the rial. The decision stipulates the following:
- The use of the U.S. dollar or any other foreign currency is strictly banned in the sale and purchase of goods and services, rental agreements, tuition and medical fees, airline tickets, and all types of financial contracts within the Republic of Yemen.
- The national currency is affirmed as the sole legal tender for all domestic transactions.
The Ministries of Industry and Trade, Justice, and Interior, along with provincial governors, have been tasked with taking the necessary regulatory measures to monitor implementation, apprehend violators, and refer them to the competent authorities.
The decision took effect on July 30, 2025, and will remain in force until it is fully implemented.
This move comes as part of the government’s efforts to curb the depreciation of the Yemeni rial, regulate the currency market, and counter speculation in foreign exchange.
