WorldYemeni authorities banned the use of foreign currency in domestic transactions

Yemeni authorities banned the use of foreign currency in domestic transactions


The Yemeni government has banned the use of foreign exchange in domestic transactions.

The decision was made as part of efforts to curb speculation on exchange rates and prevent devaluation of the local currency against foreign currencies, the government said.

Thus, the government decided to use the national currency in all transactions of sale and purchase of goods and services, when concluding contracts and trade agreements within the country.

The use of foreign currency within the country is prohibited, but does not apply to transactions and obligations arising from international agreements, the government said.

The government of Yemen on October 17 decided to stop financial transactions in the country in order to prevent a sharp fall in the exchange rate of the local currency.

A day earlier, the Central Bank of Yemen announced the revocation of licenses to operate 54 exchange offices in the capital, Aden.

In Yemen, where civil war has been going on for years, the local currency fell to an all-time low against foreign currencies.

The US dollar is currently trading at 1,380 riyals in the country.

The record depreciation of the Yemeni rial is further weakening the already low purchasing power of the population.

The country’s poverty rate is reported to have reached 80 percent.

If at the beginning of the civil war in Yemen, the dollar exchange rate was 215 Yemeni rials, then on October 11 this year it exceeded 1,250 riyals, exchange offices in Shabwa province were closed.

The Anadolu Agency’s website publishes in a shortened form . .(HAS).