The central bank threatens and does not implement, and the riyal continues to deteriorate
English - Wednesday 23 September 2020 الساعة 02:21 pm
Aden, NewsYemen:
The Central Bank of Yemen, Aden, once again threatened banks and exchange companies to take harsh measures, withdraw licenses, and re-approve measures that had been previously approved, but had not been implemented, at a time when the riyal continues to deteriorate and high prices increase the burden on citizens.
The dollar recorded in transactions on Tuesday evening, 855 riyals in Aden, 851 riyals in Hadhramaut, and 611 riyals in Sana'a.
The central bank approved the suspension of all local money transfer networks, starting next Saturday, with the exception of one of the existing exchange networks for a temporary period after closing all banks until the establishment of a unified financial network operating under the supervision of the Central Bank at the earliest time.
This came in a meeting of the bank’s leadership held, Tuesday, in the temporary capital, Aden, to discuss the monetary situation, which is witnessing an accelerated deterioration.
The bank prohibited the transfer of people more than 500 thousand riyals or its equivalent in foreign currencies per day, the non-sale of foreign currencies by exchange companies to individual exchange facilities and the prohibition of dealing in foreign currencies as a means of payment in internal commercial and service transactions.
The meeting approved the suspension of bank accounts at the Central Bank that do not comply with the laws in force and the instructions of the Central Bank and refrain from providing the Central Bank with the necessary and complete data on their activities.
He directed that exchange companies and establishments not be allowed to deal in banking or sell foreign currency to importing merchants for a number of basic commodities, namely oil derivatives, building iron, timber, cement, poultry feed, sugar, rice and wheat, in addition to preventing exchange companies from providing any credit facilities to money changers and their agents who are dealing with them.
The directives included a temporary suspension of the activity licenses of four major exchange companies, provided that their status would be corrected within a period not exceeding two weeks, as the bank promised to withdraw the licenses of the four companies and stop them permanently unless they took the initiative to correct their status.
The meeting approved the implementation of an organized and continuous inspection campaign on exchange companies and establishments to control violations and speculation in currencies in the money exchange market and take deterrent measures against those who prove this, including revoking their activity license.
