The Water extracts 40 billion riyals from the Central Bank of Aden
English - Thursday 05 August 2021 الساعة 12:23 pm
Aden, NewsYemen, special:
A source in the Central Bank of Yemen, Aden, revealed that quantities of water had leaked into the treasury of the Central Bank of Aden, which has been holding 40 billion riyals of old banknotes of pre-2015 edition since 2018.
The source confirmed to NewsYemen that the water leaving the central air conditioner in the bank has been leaking for months into the bank's treasury, and the moisture spread vertically until the stored banknotes were affected.
He explained that the bank discovered the water leakage in the middle of last July, and carried out a sorting and drying process of the currency and then returned it to the market by disbursing the salaries of sectors of state employees, and the rest of the amount was handed over to local banks in the temporary capital of Aden, to exchange the currency on the one hand and provide the liquidity that it suffers from on the other hand.
The Central Bank of Aden in mid-2018, after pumping one trillion riyals of banknotes of the new edition, had taken a measure to gradually withdraw the old banknotes from the market and store them in the bank’s vaults, but it failed due to the Houthi militia’s anticipation of storing the same denomination in its own vaults.
The total money supply of the Yemeni currency pre-2015 edition, all categories, amounted to one trillion and 350 billion riyals.
The Central Bank of Aden and the local banks in the temporary capital are suffering from a liquidity crisis in the local currency, which forced the central bank to extract 40 billion riyals of old banknotes, and to abandon its plan to replace the new edition with the old denomination.
The legitimate government and the Houthi militia are engaged in an economic war to control the currency, fuel imports and customs, which has caused severe negative repercussions on the livelihood of the population and increased food and service prices.
The Central Bank of Aden resorted to new options to bypass the Houthi militia's policy of banning the new banknotes of small size "1000, 500, 200, 100" by printing a banknote of 1000 riyals of the old size.
The liquidity crisis from the local cash in the areas under the control of the Houthi militia, and its cessation of spending and paying salaries, helped curb the demand for the dollar and direct the demand to the liberated areas, which caused a discrepancy in the exchange rate between Sanaa and Aden.
