Yemen Central Bank in Aden imposes strict regulations on forex market and imports: New mechanism starts Sunday
The Central Bank of Yemen, based in the interim capital Aden, issued a binding circular on Friday evening to all banks, exchange companies, and money changers across the country, regulating the buying and selling of foreign currency amid exceptional economic circumstances.
The Bank stated that the circular is based on the decisions of the National Committee for Regulating and Financing Imports, which set the rules and procedures for covering imports from abroad. A copy of these procedures was attached to the circular to ensure immediate enforcement.
This move comes as the Yemeni riyal strengthens against the Saudi riyal and the US dollar, supported by ongoing government measures to curb speculation and manipulation in the currency market.
The circular obliges banks and exchange companies to meet customers’ foreign currency needs for imports strictly under approved regulations, while prohibiting exchange companies from selling foreign currency to individual money changers. Any surplus foreign currency held by individual exchangers must be sold to licensed banks or exchange companies at the end of each working day or by the next morning at the latest.
On Thursday, the committee held its fourth meeting in Aden, chaired by Central Bank Governor Ahmed Ghaleb Al-Maabqi, and approved final regulations, operational manuals, and the list of goods whose import financing will be restricted to banks only, with a ban on transactions through unofficial channels. The committee set Sunday, August 10, as the start date for the new mechanism, when requests for transfers and currency exchanges will be accepted through banks and licensed exchangers.
The committee emphasized that the aim of these measures is not only to stabilize the currency market and strengthen the riyal, but also to combat smuggling, manipulation, and destructive activities—described as “terrorist”—that threaten economic and social stability in liberated areas.
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