Finally the bank intervenes by pumping the dollar into the market.. Anticipation of Riyal recovery and declining prices

Finally the bank intervenes by pumping the dollar into the market.. Anticipation of Riyal recovery and declining prices

The central bank of Yemen on Thursday announced direct intervention to correct the value of Yemeni riyal against foreign currencies after speculation in the exchange market led to an unprecedented record reversal of the local currency.

Under the resolution, the Central Bank of Yemen will pump foreign currency payments to meet the needs of the market, particularly those of the commercial sector, in order to stop speculation and ensure price stability.

The central bank of Yemen stressed that its direct intervention is in the context of its overall plan to reform monetary policies and operationalize its instruments, the state news agency Saba reported.

The bank also confirmed its intention to keep its direct intervention open and to develop mechanisms for such intervention so that exchange rates return to their realistic levels.

Yemenis are awaiting the bank's intervention, in order to recover the Yemeni riyal, which has reached record levels and has reached a dollar of 560 riyals, the lowest level.

The recovery of the riyal is expected to reflect the decline in commodity prices.


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