SEMC Demands End to Division in CBY Decisions

SEMC Demands End to Division in CBY Decisions

The Studies and Economic Media Center called for the necessity to end the division in the management of monetary policy in the country and to cancel all unilateral measures that negatively affected the stability of the Yemeni currency, warning that the continued decline of the national currency value will inevitably lead to disastrous economic effects.

The Economic Bulletin issued by SEMC underscores the importance of rearranging the current CBY position according to options that guarantee the unilateralism and independence of the CBY decisions, and reviving its role in running the monetary policy and monitoring the financial and banking sector.

Recommendations proposed by the bulletin emphasized the necessity of putting an end to the deficit financing policy by printing more banknotes, motivating non-inflationary sources, mobilizing key resources – especially oil and gas, and boosting exports of agricultural and fishery products.

The current issue of the quarterly Economic Bulletin issued by SEMC focused on the depreciation of the national currency, delving into its background and repercussions at all levels.

SEMC maintains that “Depreciation of the Yemeni riyal, which lost nearly a third of its value in a short time, reflects the depth of the Yemeni crisis and its wide-ranging economic and administrative ramifications.” According to SEMC, ” With the depreciation of the Yemeni riyal, the economic crisis in Yemen enters a more complex phase, especially as we are facing a new variable represented by two different denominations of the Yemeni currency: old and new, with each category has a different market value. This is by far the most grievous manifestation of the economic crisis. It is an expression of the extent of conflict at the economic level.”