The government says it has approved treatments to deal with speculation in exchange rates, and the bank governor requests support from the presidency

The Yemeni government approved, on Tuesday, a number of treatments regarding the decline in the local currency, in an emergency meeting held by the Prime Minister with the leadership of the Central Bank and the Ministry of Finance.

According to the official Saba news agency, "a number of urgent treatments and paths were approved to deal with the existing price speculation in the exchange rate, and the mechanisms for their urgent implementation."

The meeting discussed the level of coordination between fiscal and monetary policy to implement reforms and enhance the principles of transparency and governance in parallel with aspects of integration to control the exchange rates of the national currency and enhance public revenues, and address and overcome existing shortcomings.

Prime Minister Ahmed Awad bin Mubarak said, "The government is well aware of the disastrous consequences of the decline in the exchange rate of the national currency on the daily lives of citizens, and it is working hard to put an end to this."

He directed full coordination between fiscal and monetary policy to achieve tangible economic stability that will have a positive impact on the exchange rate of the national currency, maintain the stability of the general price level, and improve the standard of living of citizens, according to what was published by the Saba Agency.

The Governor of the Central Bank, Ahmed Ghaleb, pointed out that "the pressures on the exchange rate of the national currency are increasing with the cessation of the most important national resources, the decline in aid, and the decrease in state revenues."

He said, "The measures required from the Presidential Leadership Council and the government are to support the Central Bank to carry out its duties in these circumstances," noting that the bank has taken urgent measures to deal with the current developments in the exchange markets and the work of the banking sector, including announcing a public auction to sell $50 million.

The Minister of Finance provided a briefing on the financial situation and the tools available to support monetary policy, including rationalizing expenditures and increasing revenues, which contributes to controlling inflation and its repercussions on the prices of basic goods and services.

The Yemeni riyal witnessed a new record decline against the dollar, and the price of the dollar exceeded 2,000 Yemeni riyals, while the price of the Saudi riyal exceeded 520 riyals, in light of the government’s inability to find a solution to the worsening living crisis.