NYN | News
The Southern Money Changers Union expressed its dismay at the performance of the Central Bank in Aden, accusing its management of failing to effectively manage monetary policy.
The union stated that the recent improvement in the exchange rate of the Yemeni rial does not reflect genuine economic recovery, but rather results from temporary interventions in cash liquidity without any substantial reforms, according to a statement published today on its official Facebook page.
The union clarified that the sharp drop in the U.S. dollar exchange rate — from 3,000 to around 1,615 rials in a short period — was not driven by an increase in reserves or deposit inflows, but was the outcome of liquidity freezes and limited market interventions. It noted that the Central Bank still lacks the ability to activate core monetary policy tools, such as open market operations and control of the monetary base.
The union also held the Bank’s leadership responsible for the ongoing chaos in the currency market and criticized the discrepancy between official statements issued by the Bank and the harsh living conditions faced by citizens amid the salary crisis, shrinking liquidity, and contraction of the private sector due to declining purchasing power.
Furthermore, the union accused the Central Bank of adopting unprofessional and selective regulatory policies, stating that small exchange businesses are being shut down while major institutions’ violations are overlooked.
It also pointed out that the number of bank branches and exchange companies in some areas of Aden has exceeded 130 branches, reflecting a state of chaos in licensing and conflicts of interest within the banking sector.
In conclusion, the union called for genuine monetary reforms based on transparency and unified fiscal policy, the urgent disbursement of state employees’ salaries, and the restructuring of the Central Bank’s administration in Aden according to professional standards. It warned that the continuation of current policies could lead to a comprehensive economic and humanitarian collapse, amid growing calls to boycott banks and companies involved in currency speculation.
