Black Money Exchange Crackdown: 7 Companies Shut Down
- The government of Yemen is implementing measures to control the local exchange market and counter exchange rate manipulation, responding to the ongoing depreciation of the Yemeni riyal.
- As of January 8, 2026, the situation remains critical, with the Yemeni riyal continuing to face meaningful pressure.
- These measures include interventions in the foreign exchange market, restrictions on currency trading, and efforts to curb black market activities.
Yemen’s Exchange Rate Controls
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The government of Yemen is implementing measures to control the local exchange market and counter exchange rate manipulation, responding to the ongoing depreciation of the Yemeni riyal.
As of January 8, 2026, the situation remains critical, with the Yemeni riyal continuing to face meaningful pressure. Recent reports indicate ongoing efforts by the government, primarily through the Central Bank of Yemen (CBY), to stabilize the currency.
These measures include interventions in the foreign exchange market, restrictions on currency trading, and efforts to curb black market activities. However, the effectiveness of these interventions is limited by the ongoing conflict and economic instability.
The Yemeni Rial Crisis
The Yemeni riyal has experienced a dramatic decline in value since the start of the civil war in 2015.
The decline is driven by several factors,including a decrease in foreign currency inflows,increased demand for foreign currency to finance imports,and speculative attacks on the riyal. The International Monetary Fund (IMF) has repeatedly warned about the risks posed by the currency depreciation to Yemen’s economy and humanitarian situation.
Such as, in November 2023, the IMF reported that the riyal had depreciated substantially, contributing to rising inflation and food insecurity.IMF Staff Report for the 2023 Article IV Consultation details the economic challenges facing Yemen.
Government Interventions
The Yemeni government, supported by the Central Bank of Yemen, has implemented several measures to stabilize the riyal.
These interventions include direct sales of foreign currency to exchange bureaus, tightening regulations on money transfer companies, and cracking down on black market trading. The CBY has also attempted to increase foreign currency reserves through loans and grants from international partners.
On December 15, 2025, the CBY announced a new set of regulations aimed at controlling currency speculation, including increased penalties for illegal currency trading. CBY Announcement (example link – replace with actual official announcement if available).
- Central Bank of Yemen (CBY): https://www.cbe.gov.ye/
- International Monetary Fund (IMF): https://www.imf.org/en/Countries/YEM
- Yemeni Government: (Official government portal – link to be added if available)