30/11/2024
Strengthening financial stability and fighting currency manipulation amid the Southern Transitional Council attempts to fail reform efforts
In the face of the escalating economic challenges in Yemen, Prime Minister Dr Ahmed Awad bin Mubarak has taken a series of important steps to strengthen the stability of the national economy and protect the local currency from further deterioration. It costs the Central Monitoring and Accounting Agency to review and examine the works of the General Secretariat of the Council of Ministers for recent provocation.
These efforts represent a comprehensive package of measures aimed at combating corruption, increasing transparency, regulating financial markets, improving the performance of government institutions, and reducing the impact of the economic crisis on citizens.
Except that these efforts face major challenges from internal parties seeking to impede these reforms, highlighted by the Southern Transitional Council, which continues its pitching moves to weaken the central government. These disruptions not only affect efforts to improve the economy, but also reflect deliberate attempts to disrupt the Prime Minister's efforts and thwart any improvement that shows his ability to fix the economic situation and manage crises successfully.
Under these circumstances, Dr. Rashad Al-Aleimi, Chairman of the Presidential Leadership Council, told the Prime Minister's full support is necessary to strengthen the central government in the face of obstacles. His full support will contribute to stabilizing stability, and enhance the government's ability to implement its reform plans efficiently and effectively, especially in the light of these critical circumstances. Unifying efforts at the highest levels reflects a vision of a unified national that transcends narrow interests, emphasizes the leadership's eagerness to protect the interest of the Yemeni people, strengthen the economy, and meet challenges.
Promoting transparency and accountability in governmental institutions.
The Prime Minister instructed the Central Monitoring and Accounting System to carry out a comprehensive review of the public secretariat work of the Council of Ministers. The decision comes amid the emergence of controversial issues related to government checks, unclear financial transactions, and the publication of official documents via social media. The Prime Minister emphasized the importance of addressing these issues with the aim of promoting transparency within institutions, addressing any glitches that may have occurred, and ensuring the proper management of public resources.
But the Southern Transitional Council seeks to thwart these efforts by provoking crises, disrupting trust between citizens and the central government, all to make the government look like a failure. This ongoing obstruction reflects an attempt to thwart the Prime Minister's efforts and undermine the performance of governmental institutions, which shows the Council's tendencies toward narrow-minded interests far from the people's interest.
Secondly fighting the conflict with currency and regulating the exchange market
In view of the sharp deterioration experienced by the Yemeni Real, the Prime Minister stressed the need to intensify efforts to fight against currency warrants and prevent unlicensed exchange, which contribute to the aggravating exchange rate crisis. He emphasized the importance of coordination between the security and justice authorities in the liberated governorates, for the purpose of monitoring the exchange shops, and to punish violators firmly in order to reduce illegal strikes.
The government, in cooperation with the public prosecutor, has closed a number of non-committed exchange shops in the temporary capital, Aden. These measures come as part of broader efforts aimed at regulating financial markets, stabilizing the national currency, and reducing financial pressure on citizens. But the Southern Transitional Council, through its control over certain regions, continues to double down on this national trend by imposing local challenges that prevent the effective implementation of government procedures, leading to the continued manipulation of exchange rates in favor of certain parties.
Thirdly, strengthening the central bank policies and supporting foreign currency reserves
The priority is to strengthen central bank policies aimed at controlling cash offers and pricing more efficiently, contributing to the relative stability of the currency. There is a trend to support foreign currency reserves through international support or aid of international stability funds.
But the Transitional Council seeks to thwart these efforts, amid the government's quest to polarize international support, it raises conflicts and unrest to disrupt the attainment of required stability; revealing the Council's continuing attempts to fail reform measures, and demonstrates its concern for peer interest at the expense of the public good.
Fourthly encouraging transfers through the official channels and activating the official economy
Transfer of money through official channels from Yemeni expatriates is an important source of foreign currency in the country. From here, the government seeks to encourage the transfer of money through official banks, by offering incentives that make this process more attractive and efficient. The stable cash flow from abroad would support cash reserves and enhance the central bank's ability to support Real.
However, the transitional council’s activities are delaying the achievement of these goals by creating an unstable environment that makes official financial transfers less attractive to expatriates, hindering the government’s attempts to polarize cash transfers that support financial stability.
Fifth: strengthening the productivity of the local economy and reducing dependence on imports
The Yemeni government is seeking to boost local production and reduce reliance on imports by supporting sectors like agriculture and small industries, which can reduce the demand for foreign currencies and mitigate the impact of global fluctuations. However, the transitional council seeks to thwart these efforts, by provoking conflicts that lead to disruption of local businesses and economic activities, hampering any progress that could contribute to improving the lives of citizens and exacerbating the economic crisis.
Launching sympathetic initiatives and development projects to boost confidence
One of the noteworthy proposals that might help close the social gap is to suspend or reduce the salaries of leaders and direct the funds towards a co-operative fund to support the most needed groups, a proposal that would strengthen social ties and ease the burden on the groups most affected by the economic crisis.
It is also proposed to launch a national initiative aimed at providing training and employment opportunities for unaffiliated youth, supporting development projects that benefit all, so that every citizen feels there is a positive impact behind the Council’s presence. Through these steps, the Council demonstrates a practical commitment to community issues, helping to restore popular confidence and reinforces the legitimacy of its presence and populace.
Promoting transparency and accountability is necessary that the government seeks to continue the audit and audit within government institutions to ensure sound management of public funds, which contributes to building the confidence of the people in institutions. Cooperation with the judiciary and security authorities to strengthen the coordination between the security and judiciary authorities to curb economic crimes and protect the national economy. Supporting decentralized governance enables local authorities in liberated areas to implement price control policies and market control in line with the national trend. The fight against corruption activates strict laws to fight corruption and develop accountability mechanisms within governmental institutions. Achieving the stability of the currency, and the government will focus on supporting the stability of the Yemeni riyal through central bank policies, increasing the cash reserve, and regulating the exchange market. Encourage Local Production: Encourage local production especially in agriculture and small industry sectors, to reduce dependence on imports and create local job opportunities. Attracting international support and investment, and the necessity of the government to attract international aid and investments that support the economy and provide the necessary resources to develop infrastructure and essential services. Achieving Food Security has developed food security strategies that support local production to reduce reliance on volatile global markets. Encouraging official economic transactions and developing incentives for the use of official banking channels in transfers and investments, which contributes to promoting financial inclusion and helps stabilize the currency.
The Yemeni government faces major challenges in the wake of the transitional council's efforts to hinder progress. Despite these obstacles, the determination of the government under the leadership of the Prime Minister remains clear to implement genuine reform steps aimed at improving the economic conditions, providing a generous life for citizens, reflecting the government's commitment to the issues of the people.
If the efforts of the Prime Minister are accepted with the full support of the Chairman of the Presidential Board, Dr. Rashad Al-Aleimi, it will enhance the effectiveness of the government in facing economic challenges and deter any attempts to disrupt the reform.