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Ramzi al-Jaafari
The process of stopping the deterioration of the "real" national currency has become necessary to reduce the humanitarian catastrophe that threatens 90% of Yemenis.
The stabilization of the dollar exchange rate against the riyal is important because it will pave the way for speculation in the foreign exchange market, which becomes the black market, causing a further deterioration of the national currency, especially in the face of growing demand dollar to cover imports. Basic food.
Yemen is missing sources of foreign exchange because of a very sharp decline in exports offset by the halt in oil and gas production, the highest production of foreign exchange, the departure of embbadies and foreign companies and the impossibility of obtaining subsidies. Therefore, we must re-produce and export oil and gas and seek subsidies, aids and deposits to support the Yemen Central Bank in hard currency, as well as the unification of the country's monetary policy, and instead The central bank in Aden and Sanaa wants to neutralize the economy of the conflict and direct all revenues to the central bank of Aden, released or controlled by Houthi, and solve the problem of l & # 39; inability of the central bank and its branches of monetary policy. Central of Aden.
To combat the deterioration of the riyal against foreign currencies, the Yemeni government and its international partners must combine their efforts: increase foreign exchange reserves by increasing exports, which requires the support of foreign reserves to ensure the stability of foreign exchange. exchange rate The value of the national currency, and the country must improve the possibilities of sustainable financing of imports of basic foodstuffs at the official exchange rate, and to calm inflation.
Here, we must ask the government and its international partners to work to inject $ 200 million in down payment to at least calm the market and strike a balance. When it comes to the Saudi field, it is not yet on the right track, and it is supposed to help banks to supply the market with hard currency.
Before starting to reduce the deterioration of the national currency relative to other currencies, local refineries need to be rehabilitated to reduce Yemen's oil and gas imports, which have recently intensified and are costing billions of dollars. Leading to the collapse of the national currency, and the lack of confidence of citizens in the commercial banks and the government does a lot of financial and banking operations are outside the banking system, which is a fault of the policy monetary policy and reflects the reality of the local currency.
One of the problems that needs to be stressed when starting treatments, alerting about the effects of the Houthis decision in Sanaa to prevent the circulation of new category 500 and 1000 riyals, causing the increase of the demand for the dollar. For the dollar, by buying the dollar in the old currency in the northern provinces that prevent the circulation of the local currency from the new edition, which increases the demand for the dollar and further deterioration of the Yemeni riyal.
National and legal responsibility requires the government to find an economic team to manage the current problems, manage the Saudi deposit and resources, and control foreign imports and address the lack of tax and customs follow-up. The Yemeni private sector must also involve the Yemeni private sector in developing solutions and treatments for the exchange rate crisis The private sector is a development partner that must support the state and be an active participant. Not in the development of plans and treatments, and the inclusion of the private sector in these programs, plans and treatments will allow the government to benefit from the experiences of businessmen.
Focusing on these problems will help solve the exchange rate crisis, and this will have positive effects that will limit the humanitarian catastrophe that threatens the lives of an entire people. [Yémen] At present, the requirements to reduce the deterioration of the Yemeni riyal are related to the news link on your site
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