Deputy Governor of the Central Bank: Sharp fluctuations in the exchange rate are an inevitable result of the deterioration of the economic situation

“These sharp fluctuations in the exchange rate are an inevitable result of the deteriorating economic situation in the country, which directly affects the banking and financial sector,” said Deputy Governor of the Central Bank, Mohamed Omar Banajah.

He added during a meeting with the ambassadors of European countries, today, Tuesday, in Aden, "The Central Bank's management is working hard to overcome these challenges by using the available monetary policy tools," according to what was reported by the Saba Agency.

The Deputy Governor of the Bank discussed a number of issues related to the level of implementation of the provisions of the July 2024 agreement, which was held under the auspices of the UN envoy, with the Houthi militia.

The Deputy Governor explained that "the Central Bank of Yemen has fully responded to all the terms agreed upon with the UN envoy, including cancelling all procedures related to withdrawing the SWIFT system from banks that have not transferred their operations centers to Aden."

He pointed out that "the other party (the Houthis) did not take any tangible steps and did not even issue a statement expressing good intentions."

In July, the UN envoy to Yemen, Hans Grundberg, announced that the legitimate government and the Houthi group had agreed on several measures to de-escalate the situation in the banking sector, including cancelling recent decisions and measures against banks from both sides.

The Central Bank had begun taking measures to ban dealing with a number of banks that had not moved their headquarters to Aden, and the UN agreement stipulated "stopping any similar decisions or measures in the future."

The agreement included holding meetings to address the administrative, technical and financial challenges facing the company, and starting to hold meetings to discuss all economic and humanitarian issues based on the roadmap.

This agreement is supposed to allow the legitimate government to resume oil exports, which have been halted for more than two years after the Houthi militias prevented this and targeted oil export ports and ships transporting Yemeni crude.