Central Bank to be Granted Monetary Independence [Archives:2000/52/Local News]

The Yemeni government has recently approved a new law giving the central bank independence in monetary and administrative affairs, the Yemen’s central bank governor Ahmed Abdul Rahman Al-Samawi said in statements published last Friday. He said the move came in keeping with the state’s reform program.
In his remarks published in September 26 newspaper, Mr Al-Samawi has further said that the law restricted the government from requesting loans from the central bank “with the exception of extraordinary circumstances and only for limited amounts and periods.”
Mr Al-Samawi has added that the new law stresses non-interference in the bank’s operations by any party , and that one of the goals is to provide enough monetary liquidity for a stable monetary system based on market fundamentals, without government interference.
Yemen began carrying out economic reforms in 1995. The World Bank and the International Monetary Fund offered help to the country with the aim of improving tax and financial systems as well as to eliminate subsidies.
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