Currency Exchange Shops Closed in Aden

August 8, 2018

Yemeni security forces on Wednesday shut down a number of currency exchange shops in Aden operating without a license, hoping to blunt the impact of the war-torn nation’s deteriorating currency rates.

Saudi Arabia’s King Salman bin Abdulaziz Al Saud ordered a deposit of $2 billion to be paid into Yemen’s central bank to shore up the weakening Yemeni currency.

The Central Bank’s Board of Directors in rounds of meetings approved withdrawing the first installment of the Saudi deposit. It is expected to withdraw 20 million and 428 thousand dollars.

According to a statement published by the official Yemeni news agency (Saba), the board approved issuing government bonds at interest rates up to 12 percent at varying timeframes from one to three years.

It also approved issuing deposits to Islamic banks with a net profit on sale of 13 percent and according to the mechanisms approved by the Shariah Supervisory Board, a body deriving regulations based on Islamic jurisprudence, the statement added.

The meeting approved measures taken by Central Bank apparatuses and teams on inspecting money exchange shops, the closing of all unregulated outlets, and referring unlawful traders to relevant authorities for ensuing legal procedures.

More so, the board called on all Yemeni citizens and traders not to be swayed by baseless propaganda and increase prices of foreign currencies, causing great economic damage which affects all of Yemen.

The Yemeni riyal witnessed over the past few weeks major depreciation against foreign currencies, which led to double-digit price hikes in costs of living.

In Aden, the dollar is being traded for 522 Yemeni riyals and the Saudi Riyal for 138 Yemeni riyals.

As for Houthi-run Sanaa, the dollar costs 515 Yemeni riyals, and the Saudi riyal trades at 135 Yemeni riyals.