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The Central Bank threatens to confiscate depositors' money with exchange companies

English - Sunday 17 October 2021 الساعة 10:26 am

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Aden, NewsYemen, special:

The Central Bank of Yemen, Aden, warned against keeping any accounts or balances under any names with exchange companies and facilities, according to the requirements of the law regulating exchange business, stressing that the law grants it the confiscation or freezing of any amounts that may be deposited with exchange companies and facilities.

The Central Bank clarified that the law regulating exchange business in force specified the exchange activities that are permitted to buy and sell foreign exchange and money transfers only.

The warning of the Central Bank of Yemen came in a statement, Saturday, October 16, 2021, in which it announced the suspension of licenses to engage in money exchange business for 54 companies and exchange establishments that are not committed to the law regulating exchange business and the instructions of the Central Bank.

The Central Bank said that the exchange companies and establishments whose licenses were suspended have been referred to the competent judicial and security authorities, to complete the process of implementing the necessary legal procedures against them.

 The value of the national currency against foreign currencies continues to decline in an unprecedented manner, forcing the retail prices of basic food commodities to rise to levels that exceed people's capabilities, and increasing poverty in society, while anticipating a new increase in the prices of oil derivatives.

The exchange rate of the dollar, during Saturday's trading, approached the barrier of 1400 riyals, and the Saudi riyal approached 360 riyals.

During the past years, the exchange company robbed the most important tools of the Central Bank of Yemen by acquiring customer deposits in light of the weak confidence in local banks.

Since 2015, merchants and citizens have preferred to hoard their money in their stores and homes, or deposit it with exchange companies that keep the bulk of the money supply in their vaults.