Yemen Monitor / Newsroom:
Economic journalist Wafiq Saleh has warned of the repercussions of the local liquidity crisis, asserting that it has trapped citizens in what he described as a “snare of speculators and the parallel market.” This comes amid increasing difficulties in obtaining local currency and transacting at the official rate authorized by the Central Bank.
Saleh explained that the breakdown of exchange operations at the official rate has pushed a large segment of the population to sell their foreign currency savings at prices below their true value. He noted that this phenomenon is worsening as Eid al-Fitr approaches due to the increased demand for liquidity for consumption and shopping purposes.
He questioned the Central Bank’s ability to regain control over the monetary market and the trajectory of financial and banking transactions, in light of growing imbalances that bring back to the forefront banking issues previously addressed through a series of regulatory measures in recent years.
He emphasized that the liquidity crisis represents a genuine challenge for the Central Bank, as it hinders the smooth flow of banking activities and negatively impacts citizen confidence, in addition to its direct reflections on commercial transactions and daily life.
He pointed out that the continuation of this crisis without solutions could threaten the effectiveness of the monetary reforms implemented previously, necessitating urgent action to address imbalances and ensure the stability of the monetary system.
