Yemen Monitor / Newsroom:
Economic expert Wafiq Saleh affirmed that economic stability in Yemen remains contingent on the implementation of fundamental reforms, stressing that any reform path cannot succeed unless the resource gap is addressed and the foreign currency payments—which he described as “absurd”—are reviewed.
He pointed out that preparing the Annual General Budget is the basic executive and supervisory tool in the national economy, and reforms cannot be implemented without empowering the government to operate according to it through clear and transparent plans.
Saleh explained that the improvement in the Yemeni Riyal’s exchange rate, which coincided with a decline in inflation rates, was not a coincidence, but the fruit of the integration of fiscal and monetary policies and the adoption of exceptional measures. These measures include the formation of the National Committee for Regulating and Financing Imports, the prohibition of dealing with foreign currencies in the domestic market, in addition to rationalizing public spending and enhancing revenues.
He added that the formation of the Supreme Committee for Preparing the State’s General Budget for 2026—a step that hasn’t happened in years—represents a crucial step in rebuilding the state’s financial structure and reflects a genuine intention to launch toward sustainable economic policies.
These statements come concurrently with a lengthy interview conducted by the Asharq Al-Awsat newspaper with the Yemeni Prime Minister, Salim bin Briek, where he affirmed that the improvement in the value of the national currency and the recovery of about 30% of its lost value came as a result of “difficult decisions and financial discipline,” not due to “slogans” or media statements.
Bin Briek indicated that the success of the reform path depends on empowering the government to exercise its full powers, away from any obstruction, with support from the Presidential Leadership Council. He pointed out that the integration of fiscal and and monetary policies is the main gateway to achieving financial stability amid deteriorating economic conditions.
He reported that the measures taken, such as forming specialized committees to manage imports and imposing transparent mechanisms, contributed to reducing the gap between supply and demand for foreign currencies, which led to a relative market stability and a roughly 4% drop in the inflation rate during the first quarter of the current year compared to the same period last year, according to data from the Central Bank of Yemen.
