To stabilize national currency,The Central Bank pumps $51 million in circulation [Archives:2005/888/Business & Economy]

October 24 2005

Central Bank of Yemen has pumped $51 million into circulation in the Yemeni market as an attempt to preserve the stability of the national currency and prevent manipulation in consumer prices, this measure comes as a part of the bank's continuous and permanent follow-up operation of the local markets' developments in order to interfere suitably should any suspicious capital transactions or flow of currency take place as an attempt to play the market through manipulating the demand and supply of foreign currencies in the domestic market hereby unstabilizing the real worth value of the Yemeni Riyal

Governor of the Central Bank Mr. Ahmed Abdulrahman Al-Samawi had affirmed Yemen's central bank's dedication on keeping pace with banking developments, both internal and external as part of the bank's tasks to control liquidity of foreign currency in the national market and preserve stability of the Yemeni Riyal and keeping the national economy stable in spite of fluctuations in the capital market.

While inaugurating two training courses on financial communications among banks, swift letters and role of the Yemeni central bank in the economic, financial, banking and monetary reform process; Mr. Al-Samawi reviewed with the trainees the success Yemeni banking sector had achieved since the implementation of the program of economic and financial reform at the beginning of 1995. The success is represented by the increasing capital base of commercial banks capitals from three billion riyals to 40 billion riyals and also the increase in reserves of foreign currency of the central bank from $160 million to $5.5 billion.

Mr. Al-Samawi considers Yemen's policy in dealing with its external commitments to be comparatively efficient, he pointed out that under his governance the Yemeni banking sector achieved an accumulated increase in operations budget of 8% during the first half of 2005, assets of deposits increased by around 35 billon riyals to reach a total amount of 611 billion riyals and loans and transformations increased by around 29 billion riyals to amount to 212 billion riyals.