The Central Bank of Yemen puts $15 million for auction today
English - Wednesday 10 November 2021 الساعة 10:26 am
Aden, NewsYemen, special:
The Central Bank of Yemen, Aden, on Wednesday, for the first time in its history, has put up $15 million for auction via its electronic platform, for two hours from ten in the morning until twelve o’clock.
The bank announced that it offered the auction minus 50 riyals from the lowest indicative price in the market.
The bank noted that the total bids for each participant do not exceed 20% of the bid value, "3 million".
This allows the bid to be distributed to more than one applicant and prevents concentration.
The process of launching the public auction is a new step through which the Central Bank of Yemen, Aden, seeks to limit the collapse of the national currency, which is in a state of unprecedented deterioration.
The step is to implement the foreign currency auction system, based on the recommendations of IMF experts, which would enhance disclosure and transparency in practice.
Observers expect that the application of this international system will contribute to removing suspicions of corruption and money laundering that have been suspended in the Yemeni banking sector, and have been enshrined in international financial institutions.
The application of the electronic auction system will enable the Central Bank to obtain international financial support, as it adheres to the principle of compliance and transparency.
The central bank seeks, through the electronic auction system, to withdraw the excess supply of domestic cash from the market and restore the monetary cycle.
According to central bank data, its foreign exchange savings amount to $870 million, of which the withdrawal share from the International Monetary Fund is $650 million, the remaining $120 million is from the Saudi deposit, and $100 million is the balance of the Central Bank released from the Bank of England.
