The central bank of Aden stops financial transfers to Houthi regions
English - Monday 06 July 2020 الساعة 08:28 am
Aden, Newsyemen, private:
The Central Bank of Yemen - Aden, stopped transferring funds from the government-controlled areas to the Houthi-controlled areas to reduce the deterioration of the value of the local currency, the riyal, after the accumulation of liquidity from the local currency in Aden, and the continuation of the difference in exchange rates between the two regions.
Citizens complained that the money exchange stores refused to transfer money from Aden to Sanaa and Taiz, due to the orders of the Central Bank in Aden, while remittances between the liberated governorates remained open.
The actions of the Central Bank of Aden came due to the continued decline in the value of the local currency against foreign currencies, driven by the lack of foreign exchange, the accumulation of new banknotes in Aden, as a result of the Houthi militia ban exchange of currency in its areas of control, and the use of the Saudi riyal and the dollar as a means of exchange instead of the riyal.
The price of the dollar in transactions, on Saturday, reached 740 riyals in Aden, compared to 610 riyals in Sana'a, recording 130 riyals, the difference in the value of the local currency, the riyal, between Sana'a and Aden, prompting companies and money transfer networks to raise the local transfer service to 15% of the total transfer amount , To cover the difference in the dollar exchange rate.
The market’s reaction to the ban on banknotes in mid-December saw an increase in speculation over the price of old versus new banknotes, which led to a difference in exchange rates between the legitimacy control areas and the Houthi militia’s control areas.
