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The head of Al-Ahly Bank presents a proposal to the “Central of Yemen” to enhance the cash reserve

English - Wednesday 24 November 2021 الساعة 02:59 pm

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Aden, NewsYemen:

The Chairman of the Board of Directors of the National Bank of Yemen, Dr. Muhammad Hussein Halboub, criticized the failure of the Central Bank of Yemen in Aden to issue “certificates of deposit in dollars, in order to enhance its cash reserves of foreign currencies.”

Dr. Halboub said, on his Facebook account, that "strengthening the cash reserve of foreign currencies will enhance confidence in the Central Bank and its ability to continue selling foreign currencies by "public auction" when it needs to intervene in the market to prevent speculation in the exchange rate, or when it urgently needs to finance  government budget deficit.

He pointed out that the interest on "certificates of deposit" in foreign currencies is very small, as it fluctuates between less than 1 to 2% per year.

He stressed that the issuance of certificates of deposit in foreign currencies by the Central Bank in Aden will attract - at least - a significant percentage of Yemeni banks' deposits in foreign banks in foreign currencies.

The head of the National Bank indicated that the deposits of Yemeni banks in foreign banks are subject to freezing and the banks are facing difficulties in withdrawing and transferring due to the sanctions imposed by the US Treasury on foreign banks' dealings with Yemeni banks, which will encourage the latter to deposit in the Central Bank of Yemen.