SANAA, Jan. 7 (Saba) - Yemen's central bank in Sanaa on Tuesday revealed a Saudi-American conspiracy behind the collapse of the Yemeni currency exchange rate, blaming the government of outgoing President Abdrabbuh Mansur Hadi for the decline in the national currency against foreign currency and reaching more than 600 riyals. Against the U.S. dollar.
An official source at the Central Bank pointed out that this deterioration is due to the wrong banking policies adopted by the Central Bank of Aden since the transfer of the bank's management from Sana'a and its resort to printing new banknotes and a total amount reached in three years to 1 trillion and 700 billion riyals, which is more than many times what the Bank printed Since its inception 40 years ago, the cash offer in 2015 did not exceed 850 billion riyals.
The source confirmed in a statement to Saba that these policies led to a decrease in the purchasing power of the rial (double its value) and the rise of the dollar from 250 to 600 riyals, as well as the fact that the exchange rate will continue to collapse at each issue and printing.
The source explained that the printing of currency in any country is in accordance with banking standards and economic concepts and is not used only if there is foreign currency cash as a cover in the bank's coffers or accounts abroad, as well as if there is a surge in domestic production and an increase in domestic exports or in case of medicine. Instead of damaged cash or to cover the needs of the commercial sector, which has expanded its activity or the country's population, provided that the community is a producer that covers its needs or has exports that, exceed its total imports of goods and services.
"If we look at the above criteria, we will not find what applies to the printing case that was presented by the Central Branch of Aden," he said.
The source pointed out that any printing of cash outside economic concepts inevitably leads to the collapse of the national currency against foreign currencies, as well as an abundance of cash outside the needs of society and then used in speculation to buy foreign exchange because the currency is decreasing in value due to its frequent circulation among individuals.
He pointed out that printing leads to the entry of a large segment of the poverty line for high prices, as well as the erosion of national capital and the savings of citizens, which makes it in the case of worsened the situation in Yemen by the humanitarian disaster resulting from the aggression and siege for five years until it became classified as the worst disaster Ins being in the world according to the United Nations.
According to the official source at the Central Bank in Sana'a, the mercenary government did not respond to any vision of the solution and broke all its promises to stop printing and pay salaries to all state employees and to cover the import of goods.
The source stressed the bank's keenness to protect the national currency from further collapse under the continuation of the mercenary government and with the support of the countries of aggression by printing and pumping new money, as well as continuing bank of Aden by speculating in the printed currency to buy foreign exchange because it does not care about the rise or the exchange rate or the prices of goods, the Central Bank of Sanaa has been forced to adopts the decision to ban the circulation of currency in the unoccupied Yemeni areas, which represent 75 percent of the total commercial and population bloc. Hopefully this will help stop the deterioration of the value of the rial.
The source also revealed that the revenues of oil and gas in dollars go to a middle bank in Saudi Arabia and not to the Bank of Aden, which confirms that printing the currency is a deliberate Saudi war with distinction to raise the prices of goods purchased locally by 90 percent from abroad in dollars.
IM
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