A report issued by Studies & Economic Media Center ( SEMC ) revealed the failure of the Central Bank of Yemen to perform most of the its main tasks since it was transferred from the capital Sana’a to the temporary capital Aden in September 2016.
The report in included the evaluation of fifteen key indicators of performance. The result was disappointing as the Central Bank of Yemen failed to activate the role of the Central Bank of Yemen to play its role in managing monetary policy and monitoring the performance of banks in Yemen. And also failed With all the functions of the Central Bank provided for by law.
The report reveals the ambiguity in the regional and international position of the Central Bank, where no tangible financial or technical support has been announced to contribute in activating the Bank and its role managing the monetary policy. Despite the announcement of the activation of SWIFT, it is still suspended until now. Also the bank did not benefit from the staff of the central bank in Sana’a or other branches to active the performance of the central bank in Aden. Also the bank has no effective mechanism to communicate with the bank’s branches, and the continued absence of the bank’s management from Yemen and the holding of only two meetings of the board members within Yemen.
The report pointed out to many aspects of the failure of the Central Bank’s management, namely, the inability of the bank to manage reserves abroad and the non-operation of the internal clearing house, and the information collection unit on AML / CFT was not activated. And obligating banks to comply with financial compliance rules.
The report indicates the bank’s inability to restore confidence in the banking sector despite the printing of amounts of local money, and was unable to pay salaries to civil servants in the country, both in the liberated provinces, especially in Taiz or in Yemen as a whole.
The report attributed this failure to several factors, including the lack of efficiency of the leadership of the Central Bank of Yemen in addition to factors prior to the transfer of the bank to Aden and regional and international obstacles.
The report included several future scenarios to address the performance problem of the Central Bank of Yemen focused on the appointment of efficient management working to prevent the collapse of the central bank and the whole banking system in general, especially with the terrible deterioration in the Yemeni riyal exchange rate against the dollar and hard currency.
The Studies and Economic Media Center (SEMC) is one of the most prominent Yemeni NGOs that works on , and spreads awareness of economic issues, in addition to buttressing good governance and public engagement in decision making, and working towards the creation of professional media.
The Center has contributed tremendously to debating and rectifying economic policies, divulging the loopholes inherent in the country’s economic performance, and influencing decision makers in such a way that serves the think-tank ‘ s vision- a transparent and flourishing Yemeni economy. Further, it has assumed a vital role in presenting economic information to society in a plain and simple manner. The Center seeks to forge ahead with its scholarly mission despite the harsh conditions Yemen is experiencing.