Ongoing Monetary Measures: Sana'a secures currency circulation, boosts confidence amid economic war: Report

Saba Yemen

2 days ago

Sana'a – Saba:
In a move reflecting the depth of national economic vision, the Central Bank in Sana'a has announced the release of the second issue of the 200-riyal banknote as part of a carefully designed monetary policy aimed at reinforcing financial stability, addressing longstanding issues caused by the erosion of smaller denominations, and facilitating daily transactions for citizens—without triggering inflation or affecting exchange rates.
This step is a natural extension of previously issued coin denominations and falls within a national plan to address monetary distortion and the growing need for liquid, tradable currency. It aims to preserve the riyal's purchasing power and ensure the smooth continuation of daily economic life, especially amid the systematic economic warfare waged by the aggression and its proxies.
In an official statement, the Central Bank clarified that the new banknote has been designed according to the highest international standards and includes advanced security features. It is not an addition to the existing money supply, but rather a calculated replacement for worn-out currency—particularly denominations under 250 riyals—thereby contributing to market stability and maintaining monetary balance.
The statement noted that this move is part of a comprehensive restoration plan for the national monetary system and will not cause any liquidity disruptions or affect exchange rates. It emphasized that the new issuance is a well-studied response to a pressing societal need and not a hasty or temporary decision.
The release comes amid escalating economic warfare targeting the Yemeni riyal, with the random printing of currency by the mercenary government being one of the most damaging practices. Meanwhile, Sana'a has responded to this assault with sound, disciplined monetary policies that prioritize the interests of the people.
These measures cater to the wide segment of citizens who rely daily on smaller denominations for purchases. Many have expressed satisfaction with this step, as it facilitates transactions and reduces confusion caused by the scarcity or deterioration of small notes.
Economic observers believe this latest move by the Central Bank reflects a balanced and realistic financial approach that handles challenges with flexibility and long-term planning, rather than improvisation. They affirm that the carefully planned release of the 200-riyal note enhances the efficiency of monetary circulation without disrupting liquidity structures or causing inflationary pressures.
Observers also pointed out that Sana'a now holds the initiative, having successfully managed the currency battle using unconventional means and policies that avoided unrestrained monetary expansion. This enabled the stabilization of the exchange rate despite attempts at disruption and economic starvation through blockade and random printing.
This qualitative shift in monetary performance is closely tied to the sovereign environment created by the September 21 Revolution, which marked a turning point in reclaiming national economic decision-making and establishing independent management of financial policy. The revolution paved the way for prioritizing internal needs, away from failed foreign prescriptions and interventions seen in occupied areas.
The monetary performance in Sana'a demonstrates a high degree of caution and discipline, with the Central Bank only proceeding with the release after achieving full technical readiness and identifying the most appropriate economic and political timing. This reflects a planning-based approach rather than reactionary decisions and shows that monetary decisions in Sana'a are governed by deep national considerations, not pressure or improvisation.
Within this context, it becomes clear that the 200-riyal issuance is not an expansion of the money supply, as falsely promoted by misleading campaigns, but a calculated action to replace damaged currency and regulate monetary flow in a way that preserves financial balance and protects citizens' interests. The bank has not used the issuance to fund expenses or pay salaries but has remained committed to a transparent economic path that preserves the actual value of the riyal and protects the market from inflation or monetary chaos.
The move also carries clear political messages, notably that the delayed issuance was linked to giving political processes and peace obligations—delayed by the aggression—a chance. This confirms that monetary policy in Sana'a is not isolated from the broader national vision but operates within an integrated strategy.
The issuance of the 200-riyal note comes at a critical time, especially as the bank begins to study the release of smaller denominations—below 50 riyals—in the coming months to further enhance monetary balance, without resorting to rash interventions or uncalculated decisions, aligning with Sana'a's strategy of minimal interference with maximum effectiveness.
This financial policy is a clear embodiment of the principle of sound governance, which now characterizes state institutions in Sana'a, where currency is treated as a tool to protect citizens—not as a means to flood the market or finance chaos, as is the case in occupied areas.
The success of this step reflects the community's awareness and trust in the Central Bank. Citizens have welcomed the new issue with understanding and relief, especially among the poor and those most in need, who have long suffered from a lack of suitable currency for their basic daily transactions.
This constructive approach exposes the lies spread by enemy media, which seek to discredit every national action, while the continuous measures in Sana'a prove their effectiveness through financial balance and enabling citizens to live with the least amount of hardship.
Economic experts argue that the new issuance represents a strategic shift in the performance of the economic front and reflects the Central Bank's ability to manage the monetary battle with sovereign and effective tools. The issuance serves as a symbolic declaration of continued resistance economy-building, based on independent national decision-making, making monetary policy a key tool in market protection and in boosting public trust in national institutions.
This step also underscores that the monetary battle has not merely been a contest of banknotes and printings, but a battle of awareness and steadfastness, in which the Sana'a government managed to protect the currency and restore the principles of sovereignty and independence. This stands in stark contrast to the severe currency collapse in the so-called hotel government areas, where reckless printing policies have devalued the riyal and driven inflation to unprecedented levels in Yemen's modern history.
It is clear that Sana'a's ability to face this economic war did not emerge from a vacuum but is the result of national economic expertise, conscious financial management, stable political support, and popular resilience—which serves as fuel for this battle that has seen Sana'a shift from defense to initiative, from fortification to reconstruction.
Current indicators suggest that Sana'a is steadily advancing toward building a balanced national monetary policy based on a precise understanding of the reality, aimed at correcting imbalances without destabilizing the market or burdening citizens. With each carefully considered step, the Central Bank continues to prove its ability to turn challenges into tools of protection and demonstrates that the national administration of the economic file holds the reins and confidently leads the financial battle with strength and competence.
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