Government decisions on exchange rate reduction and economic recovery (text of resolutions)

Government decisions on exchange rate reduction and economic recovery (text of resolutions)

The Yemeni government on Wednesday issued resolutions on restricting the import of essential goods and derivatives by means of credits, collections and documentary remittances, and providing hard currency to fulfill needs abroad.

It also issued decisions regarding the seizure of foreign currency financial flows to banks from expatriate remittances.

According to pictures of the three resolutions issued by the Government and published by the Chairman of the Economic Commission Hafez Me’iad on his Facebook page, the first decision is to prevent the entry or import of any commodities and petroleum derivatives except through a bank certificate for the merchant.

The certificate is given to the merchant from the local bank with which it deals and under the supervision of the Central bank, and this certificate indicates the obligation of the merchant and importer to use the banking channels and financial instruments of foreign trade (credits, transfers or documentary collections).

The resolution stressed that permits for land, sea or air transportation of any such goods or petroleum derivatives would not be granted and not cleared from any outlet.

On the other hand, the government and the Central Bank are committed to providing the foreign currency required to cover all the funds and documentary remittances required for the five commodities declared, namely flour, rice, sugar, baby milk and food, and the market price for all merchants and across all banks.

It is also committed to providing the foreign currency necessary to cover all the funds and documentary orders required for petroleum derivatives from the market and all available sources in the organization and controls of the central bank.

According to the decision, the central bank is committed to migrating local banks ' stocks of foreign currency into their offshore accounts, after banks deposit that stock of currencies into their accounts in the bank's branches in the portfolios they specify.

The decision prohibits the release of any amount in any currency exceeding 10 USD per person unless authorized by the Central bank.

The Government and the Central Bank are committed not to pay their Yemeni riyal obligations and are disbursed in US dollars to prevent the beneficiaries from going to market speculation, with the exception of salaries, in addition to paying salaries to the military and civil services through local banks.

According to those decisions, any Yemeni citizen traveling for the purpose of treatment abroad is entitled to buy 2,000 US dollars’ worth of foreign currency at the market price minus 10 riyals per dollar from any local bank, provided that travel documents such as passport, ticket, and medical report are brought.


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