The Central Bank of Yemen was established in 1971. After the reunion of the northern and south sectors of Yemen on 22nd May 1990, the Central Bank of Yemen merged with the Bank of Yemen and was assigned the original name, “Central Bank of Yemen”.
The Central Bank of Yemen is an independent body established by Law to carry out those functions that are typical to central banks. The bank is headquartered in Sanaa. The objectives of the bank can be broadly classified as:
- Conducting the monetary policy to keep inflation under control
- Stabilize the exchange rate of the national currency
- Promote investment in the economy
- Ensure the overall economic growth of the Yemeni economy
As the central bank of the country, the Central Bank of Yemen is required to undertake following activities:
Monetary Policy measures
The Central Bank of Yemen uses all tools of monetary policy at its disposal in order to check and control the inflation levels. As part of its central banking functions, the bank is also required to stabilize the exchange rate of the national currency.
The Central Bank of Yemen has the sole responsibility of issuing the notes and coins and controlling their circulation.
Management of the official reserves
The Central Bank of Yemen is solely responsible for holding and managing the official foreign exchange reserves of the country and investing it prudently.
Acting as the Banker’s Bank
The Central Bank of Yemen is also responsible for acting as the banker to the country’s banks.
Banker to the Government
The Bank is also required to act as the Banker to the Government and also advice it on economic, monetary and financial matters.
The Bank is also required to supervise the activities of the banking system in the country and direct its activities.
The management of the Central Bank of Yemen is in the hands of Board of Directors. The Governor of the Bank is also the Chairman of the Board.
The Address and Contact details of the bank is as follows:
Central Bank of Yemen
Address: P.O. Box 59 Sana'a REPUBLIC OF YEMEN Phone No.: ++967-1-27 43 71 Fax: ++967-1-27 41 31