A senior financial official in the National Salvation Government has commented on the main goal the Saudi-led so-called “Hadi government” has for printing more and more Yemeni currency that is not covered by the local market.
“By flooding the local market with illegal currency, the government’s finance ministry is seeking to withdraw foreign exchange and, in turn, cause higher commodity prices,” Dr. Ahmed Hajar, Undersecretary of Planning in the Finance Ministry said in a televised interview on Sunday night.
“The Saudi-led aggression forces are disturbed by the Central Bank’s move, as an indication of its effectiveness in the face of the enemy’s bet (…) to put pressure on the home front,” he added.
The Central Bank of Yemen in the capital Sana’a decided to ban the circulation of currency printed by Hadi’s government, and give those who hold it 30 days to replace it with approved banknotes or electronic riyals.
The Yemeni government cabinet supported the actions of the Central Bank in Sana’a, and confirmed at a meeting chaired by Prime Minister Abdel Aziz Bin Habtoor its “compliance with the council’s decision No. (57) for 2018 on the prohibition of the circulation of illegal currency and the criminalization of those who deal with it.”
During the meeting on Sunday, the government declared that it “supports the Central Bank’s actions and constructive efforts to reduce the impact of the illegal currency on the national economy and its disastrous effects on the exchange rate and the rise in commodity prices”.
On the other hand, the cabinet assured citizens that “their full rights are reserved and included in the legal procedures announced by the Central Bank, which ensured that citizens are protected from the negative impact of the illegal currency, by compensating them in the official currency of the state”.
It also condemned “the use by the coalition of aggression the printing of currency as a tool of war against the Yemeni people.”
It called on the United Nations, the Security Council and the International Monetary Fund to “play their part in stopping the deterioration of the national currency, and fulfilling their previously announced pledges to stop the printing of the currency, which they said is inflationary and has direct and catastrophic damage to the economy and the standard of living of citizens”.
“What the Occupied Bank of Aden has printed for five years, is more than has been printed in more than 30 years,” Dr. Rashid Abu al-Luhum, governor of the Central Bank of Sana’a said.
“The illegal currency was exchanged to more than 900 citizens in 24 different provinces in just one working day,” he added.
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