Y.R 390 billion CBY's revenues of Saudi cash deposit in seven months
English - Sunday 14 April 2019 الساعة 07:48 pm
Aden – NewsYemen.net
The Central Bank of Yemen(CBY)'s revenues in Aden of the sale of Saudi deposits amounted to Y.R 390 billion over the past seven months, in addition to Y.R 86.6 billion that went to traders - the preferential price differentials against the market price.
According to the CBY data, total withdrawals of the deposit amounted to $ 866 million till April 8, reducing the deposit from $ 2 billion to $ 1.134 billion.
The CBY has adopted documentary credit operations for importing basic food commodities since last July. In a simplified calculation, $ 866 million in preferential prices granted by the CBY to traders during the past seven months is worth Y.R 390 billion.
The withdrawn amount value of the Saudi Cash deposit at the parallel market price was about Y.R 476.3 while low-differential price granted to traders of the market price was Y.R 100, price differentials estimated at Y.R 86.6 billion goes to traders, and the Yemeni people did not get benefit in the absence of the State regulatory bodies on the prices of the traders' purchase and the Sale of goods in the domestic market.
Economists had warned of the dangers of the CBY's policies and decisions - commodity support on the economy, which they are said it will legitimize the corruption, looting people's money and giving it to the rich at the expense of the poor.
The CBY in the interim Capital Aden grants Bank Credit to import basic foodstuffs (wheat, rice, sugar, baby milk and edible oil) at a preferential price of about Y.R 100. The CBY recently added covering oil derivatives and flour.
According to the documentary credit mechanism, traders open documentary credits in Yemeni national currency at local banks. Banks, in turn, CBY sell them dollars at a preferential rate to cover accounts of importing traders for basic commodities.
A few in the private sector monopolizes the importing of cereals, sugar and other food commodities such as cooking oils and powdered milk, the most important food commodity, so that their import is limited to specific commercial companies.
It is expected to increase the pressure of withdrawals of the Saudi cash deposit remaining $ 1.134 billion in the coming months, which include the entry of flour and oil derivatives, which provides large sums of money to the State treasury, but financial experts believe that the CBY will fall in trouble after the depletion of the Saudi deposit, if the CBY or the State do not find resources to strengthen the reserves of the Bank by dollar in particular.
According to statements by the former central bank governor, the revenues of the Saudi Cash deposit were distributed as salaries to retirees and State employees. However, financial experts criticized Hadi's government for not announcing the country's balance of payments lists during the last period so that the people would know the distribution of its money.
