SANAA, Dec. 25 (Saba) - Yemen's central bank, Sana'a's main center, revealed that the Bank of Aden has printed more currency in two years than it has issued in more than 40 years.
The bank explained that the cash supply before the aggression is approximately 850.9 billion riyals, which is the money needed to meet the needs of the Yemeni economy as a whole.
The aggression in 2015 caused the suspension of all public financial resources of the state, mainly exports, and issued nearly 500 billion riyals during 2015 and 2016 to meet the inevitable expenses of salaries and operating expenses for all provinces of the Republic.
Then came the decision in violation of the Central Bank Law No. 14 of 2000 and the Constitution, which is the transfer of the functions of the Central Bank to Aden, which began printing 400 billion riyals at the beginning of 2017.
Not only did Bank Aden do so, but continued the printing process to reach 1 trillion and 300 billion riyals for the second half of 2017, 2018 and 2019, bringing the total printed 1 trillion and 700 billion riyals by The Bank of Aden.
When calculating the total cash offer, it has reached 3 trillion riyals, which is a catastrophic figure and has negative consequences for the economy, national capital and citizens.
The bank's aden branch's justification for continuing to print the new currency on the grounds of salary payments makes no sense because 70 percent of employees have not received their salaries since 2017 despite continuous printing.
According to economists, the monetary policy adopted by the Bank's branch in Aden does not serve the functions of monetary policy in order to stabilize the national currency against foreign currencies and curb inflation rates in order to achieve some kind of price stability, nor does it serve the state policy and its directions in debt management. Internal and external public and payment of obligations to the government.
In this regard, experts warned of the danger of dealing with the illegal currency because of the devastating effects of the national economy and the increased suffering of citizens.
They stressed that continuing to deal in illegal currency will directly affect citizens through higher prices.
IM