The Central Bank of Yemen in Aden, the country's temporary capital, announced a series of measures on Thursday, June 13th, 2024, aimed at regulating money transfer mechanisms and obligating all local exchange companies to comply, coinciding with the arrival of a new tranche of a Saudi grant to support the state budget.

A source at the bank told "Barran Press" that the bank has set a limit of $10,000 for internal transfers per transaction per day, or its equivalent in foreign currencies.

The bank has also ordered the complete cessation of cover operations between exchange bureaus and the halting of all currency rate updates in any banking applications or official pages after official working hours, according to the source.

The source explained that the Central Bank's decisions are part of its efforts to regulate the local exchange sector, particularly after establishing a unified national network for money transfers.

The source highlighted that these measures are part of a package of procedural steps through which the bank aims to curb the sharp decline in the local currency against the dollar and limit currency speculation, noting that the bank will issue a statement on the matter later tonight.

Earlier today, the President of the Presidential Leadership Council, Rashad Al-Alimi, announced the deposit of a new tranche of the "generous" Saudi grant to the general budget. He stated that the grant will contribute to "paying salaries for employees and addressing service needs."

Al-Alimi said, "Today, the Kingdom's leadership has fulfilled its promise and commitment by depositing a new tranche of its generous grant to the general budget, which will have a significant impact on the state's continued fulfillment of its mandatory obligations, primarily paying salaries for employees, addressing service needs, and increasing humanitarian assistance."

Yemen is facing a severe currency crisis with the escalating instability of the local currency. The exchange rate of the riyal against foreign currencies has reached its lowest level in Aden and areas controlled by the Yemeni government, with one dollar exceeding 1800 riyals, compared to 1676 riyals in late April. The Saudi riyal also reached 477 riyals for sale, compared to 441 riyals previously.

The Yemeni economy is also facing tough challenges due to the currency split imposed by the Houthi group, internationally designated as a terrorist organization. These challenges intensified following the group's bombing of oil export ports in October 2023, preventing the internationally recognized government from exporting oil.

On August 1st, 2023, Saudi Arabia announced a new financial grant of $1.2 billion to the internationally recognized Yemeni government to finance the general budget and support the value of the Yemeni riyal.