The Board of Directors of the Central Bank of Yemen Holds its 5th Session for 2023
2023-05-11
On Wednesday, May 10, 2023, the Board of Directors of the Central Bank of Yemen had its fifth meeting session in the bank's Headquarters in Aden. The meeting was headed by the Governor, Mr. Ahmed Bin Ahmed Ghalib. The Board discussed several issues on its agenda, including developments in various sectors of the national economy during the first quarter of the current year, namely liquidity indicators, money supply, price level, & foreign reserves position. The Board also discussed developments in public finance with regard to revenue and expenditure, the current budget deficit, and the possible ways to finance this deficit from available and non-inflationary sources in order to eventually be able to maintain relative stability in the currency exchange rate and the price level, in light of the unfavorable developments resulted from the irresponsible targeting of ports, facilities and oil tankers by the militia.
In addition, the Board discussed the cessation of oil exports which resulted in more pressures on limited resources and led to more increase in the people’s suffering due to the severe decline in the level of many services and the inability to fulfill the inevitable obligations, especially the payment of allowances to the students abroad and of the debt service for the international financial institutions that provide aids and simplified service and development loans to Yemen in all its governorates and to all its citizens. The Board called on the government and its agencies to increase and strengthen coordination with the Central Bank toward implementing precautionary financial and monetary policies and rearranging priorities in a way that helps the country overcome its difficult and exceptional ongoing circumstances. In this regard, the Board stresses on the Central Bank's commitment to enhancing the declared precautionary policies and not allowing its violation, under whatever the circumstances, except within the limits permitted by the law and only for the service of the public interest.
Furthermore, the Board appreciated the support for the Central Bank in various fields by friendly and brotherly countries and institutions, especially at this critical stage. In particular، the Board highly valued the commitment of the Kingdom of Saudi Arabia to provide an urgent financial support package to Yemen in continuation of its constant support to Yemeni people in all fields and stages in order to allow them to overcome many of their economic problems and to alleviate their daily suffering.
On the other hand, the Board reviewed many studies and assessments of the Militia's destructive and illegal measures practiced against the financial and banking sector under different names and for the mere purpose of uprooting the financial and national institutions and the old banking entities established in accordance with national republic laws and international standards.
Hence, the Board affirmed that the laws governing and regulating the work of financial and banking institutions are the laws of the Republic of Yemen which were issued by its recognized, elected, legal, and constitutional institutions. Therefore, the Board warned that any institution or entity identifies or submits to unlawful dictates be subject to national, regional, and international legal procedures.
In the meantime, the Board called for allowing the banking sector to operate freely in accordance with the laws that regulate and govern its work in accordance with the generally accepted international banking standards, and to stop harmful practices and illegal and non-national measures in order to preserve the people's assets and savings accumulated and deposited in these institutions.
The Board will continue its meetings to complete the discussions on the topics remaining on its agenda and then take the necessary actions in this regard during the next two days.
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