Yemeni Central Bank lowers riyal value and raises exchange rate to 495 riyals per dollars

Yemeni Central Bank  lowers riyal value and raises exchange rate to 495 riyals per dollars

The central bank of Yemen on Wednesday announced a new official devaluation of the local currency against US dollar, saying that it had adopted a new exchange rate for imports at 495 riyals per dollar, instead of the previous exchange rate of 440 riyals.

In a circulation the Bank's newsletter on its official page on (Facebook), the bank confirmed that it had made the exchange for importers of petroleum derivatives at the dollar price in the market minus 10 riyals, which was at the time (495/USD).

The central bank has assured merchants, businessmen, companies and institutions that the central bank will cover all of their foreign exchange needs for import purposes and the lowest price recorded in the market, and in their accounts in the approved banks, and the central bank will feed the balances of the approved and shared banks and their correspondents abroad as soon as the they process is performed in the accounts of the client and the central bank accounts.

According to the bank, the Yemeni seeks to secure the needs of merchants and importers by restoring the financial cycle of banks and drying up the sources of money for speculators in the black market.

For seven months, the central bank has been financing imports of essential commodities (wheat, corn, rice, sugar, baby milk, cooking oil) at a formal exchange rate that gradually declined from 585 riyals/dollars beginning in November 2018 to 440 riyals/USD at the beginning of December 2019.

The central bank of Yemen approved mid-August 2017 to free the price of the Yemeni riyal, to determine the foreign exchange rate according to the supply and demand mechanisms, and the new depreciation of the riyal indicates the bank's intention to return to the exchange rate and to approve it according to supply and demand.

According to economists, the managed free exchange rate system and any "middle " System is the best and most effective system for Yemen, because the full free exchange rate system is not commensurate with the reality of Yemen's economy for many reasons and factors.


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