Yemen’s government has begun accepting U.A.E. dollar as payment for purchases and sales, the country’s central bank said.
The central bank on Monday announced that people who are citizens of Yemen, its main trading partner, will be able to buy or sell Yemeni currency through its official exchange rate bureau.
The bureau said the central bank is opening up an alternative way to purchase and sell Yemeni U.s. currency, with a new exchange rate.
“The new system will enable people to exchange their U.a.E.’s for the local currency without having to deal with foreign exchange brokers or banks,” the central Bank said in a statement on Monday.
The U.N. has described Yemen as a “major transit route for illicitly traded and stolen goods, as well as the source of funds for Al Qaeda, the Islamic State, and other armed groups.”
Yemen’s central Bank, a quasi-state agency, has been the countrys main issuer of dollars since its inception in 1998, when it first issued its own national currency.
Its official exchange rates are also set by the International Monetary Fund and the World Bank.
Yemen is home to about one-third of the worlds population of 6.3 million, but it has been plagued by a food crisis and spiraling crime that has prompted the U.K. to impose sanctions on the impoverished country.
Yaman Abdul Rauf, Yemen’s interim foreign minister, said on Monday the central banks decision to accept the Ua.e. dollar is a step forward for the country.
The country is now able to meet the demands of its citizens and the people of Yemen,” he said in an interview with Al Jazeera.”
People are now able, and I’m sure they will continue to be able, to transact their business in the country and buy and hold things.