Central Bank of Yemen

Editor’s Note: This analysis first appeared in The Week in Yemen, the Sana’a Center’s weekly report series. During a meeting in Riyadh, the Presidential Leadership Council (PLC) discussed the implementation of the government’s 2026 program alongside projected state budget figures. The draft program—a copy of which was viewed by the Sana’a Center—is structured into three tiers: a situational assessment, the…

The war has fundamentally altered Yemen’s trade finance system, transforming it from a reliable, unified, bank-led mechanism into several divergent, conflicting structures that have made import financing cumbersome, costly, and unstable. The conflict has led to the suspension of oil and gas exports — the country’s primary source of revenue and foreign currency — and resulted in the division of…

Yemen’s economy remains under severe strain, with its real GDP projected to decline by 1.5 percent in 2025. According to the World Food Programme (WFP), 61 percent of surveyed households in the country struggled to meet their minimum food needs in November. Of this group, 35 percent were facing severe food insecurity. Inadequate food consumption affected 63 percent of households…

The Yemeni rial has seen a dramatic recovery since late July, appreciating by over 44 percent after months of hemorrhaging value. Its sudden rise is the result of a multi-pronged approach led by the government-run Central Bank of Yemen in Aden (CBY-Aden). Key measures have included curbing speculation and currency manipulation, institutionalizing import financing, and mandating the exclusive use of…

Yemen's fractured monetary system is on the brink of further division. The Houthi group has introduced new unilateral monetary measures, issuing new coins and banknotes in an attempt to consolidate financial control, undermine their rivals, and sustain the war economy. On July 13, the Houthi-affiliated Central Bank of Yemen in Sana’a (CBY-Sana’a) issued a new 50-rial coin. Two days later,…

The first quarter of 2025 saw escalating US sanctions against the Houthis. The sanctions, intended to suffocate the Houthis financially, could have a negative impact on Yemen’s already fragile financial system, and threaten to disrupt flows of crucial humanitarian aid and remittances, further destabilizing the economy. In mid-January, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC)…

Yemen is experiencing a severe economic downturn as it tries to navigate long-term fiscal challenges. A World Bank report on Fiscal Vulnerabilities in Low-Income Countries released in late November highlighted Yemen’s dire fiscal situation as among the worst in the world. The World Bank’s Yemen Monitor for Spring 2024 noted that the current crisis is caused by plummeting oil and…

A political crisis has wracked the interim capital of Aden as the internationally recognized government struggles to deal with the plummeting Yemeni rial. The currency now trades at over YR2,000 to the dollar, having lost over a third of its value since the year began. Riven by political infighting and lacking the vision or tools to arrest the slide, an…