Central Bank Governor reveals causes of sharp decline of Yemeni Riyal

The Central Bank of Yemen in the capital Sana’a has revealed the real causes of inflation and the sharp deterioration of the national currency, the Yemeni riyal, against foreign currencies, despite the success of its measures in curbing the deterioration and achieve an improvement of the exchange rate.

“The country’s sharp decline in the national currency is a result of the aggression’s acquisition of foreign reserves, oil and gas,” Central Bank Governor Rashid Abu Luhum said in a televised interview.

“The aggression did not allow oil and gas revenues to be invested in order to cover Yemen’s dollar reserves abroad,” Abu Luhum said in an interview with Al-Masirah TV Channel on Wednesday night.

The Central Bank Governor attributed the inflation to the coalition war.

“The country’s inflation situation is also the result of the printing of illegal local currency, which has led to higher prices,” he added

In this context, Abu Rashid pointed to the bank’s measures to curb the decline in the exchange of the riyal.

“The countries of aggression did not like the improvement of the exchange rate, so they printed 80 billion riyals and pumped them to the local market [in order to damage the economy].”

“We are implementing strict control measures in the banking sector to improve the exchange rate in the state-controlled provinces,” said  Abu Luhum, governor of the Central Bank said, referring to the areas under control of the National Salvation Government.

The coalition and the Hadi puppet government have printed about 1.2 trillion worth of Yemeni riyal without foreign monetary cover as well as reviving speculation on the dollar, which as led to a massive plummeting in the worth of the riyal.

E.M