Central Bank of Yemen

The Central Bank of Yemen is the principal monetary authority in Yemen, tasked with managing the national currency, regulating liquidity, and formulating monetary policy amid a challenging environment shaped by political and economic instability. It seeks to control inflation and stabilize the financial system by supervising commercial banks and managing foreign exchange reserves. Despite the complexities of operating under conditions of conflict and economic disruption, the bank has initiated steps toward modernization, including the gradual adoption of digital payment systems and improvements in cybersecurity to protect sensitive financial data. Efforts to enhance transparency are made through periodic economic updates and policy statements designed to build trust among the populace and international partners. Collaborative engagements with regional and international institutions, though often hampered by external pressures, are part of its strategy to align with global best practices. Furthermore, initiatives targeting financial inclusion aim to extend modern banking services to a broader segment of society, thereby contributing to economic recovery and social stability. By balancing traditional monetary instruments with ongoing digital reforms, the Central Bank of Yemen strives to restore and maintain financial stability and foster long‑term sustainable growth even under extremely challenging conditions.