The leadership of the Central Bank of Yemen, headed by Deputy Governor Mohammed Banajah, met with European Union ambassadors on Tuesday to discuss the implementation of the July 2024 agreement announced by the UN envoy to Yemen, which resulted in the cancellation of certain bank decisions.

The meeting focused on the sharp and rapid fluctuations in the exchange rate of the national currency against foreign currencies, according to the official Saba News Agency.

Banajah confirmed that the Central Bank has fully complied with the agreement's terms, including the cancellation of measures related to the removal of the SWIFT system for banks that had not moved their operations to Aden.

He pointed out that the opposing party, the Houthi group—which is internationally designated as a terrorist organization—has not taken any tangible steps or issued a statement expressing goodwill.

Regarding the severe currency fluctuations, Banajah noted that these variations are an inevitable consequence of the deteriorating economic conditions in the country, which directly impact the banking and financial sectors. He emphasized that the Central Bank is working diligently to overcome these challenges using available monetary policy tools.

On July 23, the UN envoy's office announced that the internationally recognized Yemeni government and the Houthi group had agreed on several measures to de-escalate tensions concerning the banking sector and Yemenia Airlines.

The agreement included the cancellation of recent decisions and actions against banks from both sides, a commitment to refrain from similar measures in the future, and the resumption of Yemenia flights between Sana'a and Jordan, increasing the number of flights to three per day, along with daily flights to Cairo and India as needed.

Additionally, the agreement stipulated that meetings would be held to address the administrative, technical, and financial challenges facing the airline and to begin discussions on all economic and humanitarian issues based on a roadmap.