Yemeni Rial Rises Sharply Amid Central Bank Crackdown on Currency Markets
The rally follows a series of regulatory measures by the Central Bank of Yemen in Aden, which recently suspended licenses for 37 exchange firms found to be in violation of financial regulations. Analysts say the crackdown has curbed speculative trading and reduced demand for foreign currency in the black market, contributing to the rial's recovery.
Economic experts also credit the bank's activation of an import oversight committee, which now requires fuel importers to transact exclusively through designated banks rather than informal exchange networks. This shift has reportedly eased pressure on foreign reserves and stabilized demand for hard currency.
Despite the improvement, market conditions remain fragile. Many traders have halted dollar purchases amid uncertainty over future regulations, while consumer demand continues to weaken due to inflation and limited purchasing power. The rial's rebound has sparked cautious optimism, with some analysts predicting a gradual decline in commodity prices if the trend holds.
Yemen's economy, battered by a decade-long conflict, faces ongoing challenges including dwindling foreign reserves, disrupted trade, and widespread humanitarian needs. The recent currency gains offer a rare moment of relief, though experts warn that sustained recovery will require deeper structural reforms and political stability.
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