In a step described as the boldest in years, the Central Bank of Yemen in Sanaa today issued a stunning monetary circular setting the maximum limit for the selling prices of foreign currencies approved by the Foreign Exchange Dealing Unit, in a historic decision that upended the financial balance and sparked a wave of questions and confusion among citizens.
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According to the circular issued, the bank set the price of the Saudi riyal against the Yemeni riyal at 140 riyals, and the price of the US dollar against the Yemeni riyal was fixed at 530.50 riyals, while the price of the US dollar against the Saudi riyal was set at 3.79 Saudi riyals per dollar.
The Central Bank of Yemen confirmed that these prices represent the official upper limit approved in market transactions, indicating that the prices will be updated immediately upon any official change by the Foreign Exchange Unit.
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In confirmation of its strictness in implementing the historic decision, the bank called on citizens to immediately report any violation or transgression via the toll-free number (8006800) or communicate directly on the number (01274327).
This shocking monetary circular comes in light of the sharp fluctuations witnessed in the exchange market, which experts consider an attempt by the bank to reset the Yemeni financial market and regain control over the exchange rate, which has witnessed wide variation over the past weeks.
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The recent Central Bank decision, which analysts considered a historic financial turning point, has reshuffled the cards in the market and created widespread confusion among traders and citizens, whose opinions varied between supportive and conservative, amid expectations that the decision will have direct effects on prices and commercial transactions in the coming days.
