NYN | News
Concerns are rising over the deteriorating financial situation in Aden as the Southern Money Exchangers’ Syndicate warns that continued administrative and regulatory dysfunction at the Central Bank may threaten economic reform efforts and undermine any support provided by international institutions.
In an official memo published by the syndicate on its account yesterday, it noted that the measures issued by the Central Bank’s management in recent months lacked professional and regulatory standards, creating a turbulent financial environment that allowed non-compliant practices to expand outside the organized banking framework.
The memo outlined a set of issues the syndicate considers direct causes of the failure to stabilize the currency, most notably:
Microfinance banks engaging in currency exchange and trading activities without legal jurisdiction, which has distorted the market and entangled financial activities.
Use of electronic wallets as unregulated platforms for currency trading with no transfer limits, opening the door to money laundering risks and illicit operations.
Allowing exchange companies to open financial accounts for citizens in violation of international banking standards, leading to the bankruptcy of several companies without safeguards for clients’ funds.
Weak oversight of commercial banks and microfinance banks, and the Central Bank’s inability to enforce financial transparency in cases of default.
Lack of clear monetary regulations governing liquidity and daily transfers, causing the financial market to operate outside intended regulatory limits.
The syndicate warned that the continuation of these conditions may undermine any reform programs or international financial assistance, stressing the need for comprehensive administrative and regulatory reforms to restore the Central Bank’s effective role in organizing the financial sector and protecting citizens’ funds.
It called on the World Bank to dispatch an independent technical assessment team to review the performance of the Central Bank in Aden and to establish an urgent reform matrix, affirming its readiness to provide the necessary data and observations to support the team’s work.
These demands come at a time when Yemen’s financial sector faces extensive challenges, including overlapping banking activities, weak oversight, and increasing risks to depositors and users of financial services.
