Yemen: The Central Bank, in its capacity, assumes the role of managing monetary policy as one of the most critical pillars of the macroeconomic policy of the state. 

The aim of the monetary policy, formulated and implemented by the central bank, is to achieve monetary stability by controlling the money supply in the economy, whether through expansion or contraction. 

The central bank is also responsible for managing the national currency's exchange rate policy, determining the exchange rate system adopted within the state's economic policy framework, and selecting effective monetary tools to ensure the implementation of this policy. Additionally, it manages the necessary official reserves of foreign currencies for settling international payments.

An increase in the money supply in the economy and a deterioration in the currency's exchange rate lead to higher inflation levels and a reduction in the purchasing power of the national currency. 

This results in increased prices and a worsening general economic situation. In this context, the central bank is also tasked with developing payment systems, managing currency issuance by printing, storing, and issuing the national currency, and providing the necessary monetary cover for issuance when required by economic conditions.

Currency issuance by the national bank is a prominent manifestation of state sovereignty that does not need to rely on any alleged international legitimacy, as this would infringe on its national sovereignty derived from within the country, not from outside. 

Printing, storing, and issuing currency are intrinsic to the state's internal authority, exercised through its central bank legally entrusted with this monetary authority, according to recognized monetary regulations and standards.

The central bank must work to protect the national currency from counterfeiting and monitor the amount of money circulating in the economy, which is crucial for achieving its primary function of establishing financial stability. If the central bank loses its ability to control the monetary base by losing the capability to manage currency issuance, it turns from being a provider of liquidity to a seeker of it, with catastrophic consequences.

In addition to these important functions, the central bank also undertakes other equally significant roles. It acts as the government's bank, the bank of banks, and oversees the proper functioning and performance of the national banking system. It also needs to perform statistical tasks related to the state of the macroeconomy and its indicators, enabling it to effectively carry out its various functions.

The bank must adhere to principles of independence, accountability, and transparency in performing its duties to ensure it fulfills the tasks assigned to it as outlined by its founding law and other relevant legislation.

Due to the central bank's crucial role and functions in the economy, forces and tools of aggression have targeted the central bank and the national currency by repeatedly printing and issuing large quantities of currency, following the American ambassador's directives, after threatening national forces in Sana'a to move the central bank to Aden. This has had repercussions on the pillars of the economy due to the resulting effects on the economy in general and the central bank, given its pivotal role, in particular.

The repeated printing of currency without monetary cover by the so-called central bank in Aden has led to a deterioration in the currency's purchasing power, higher inflation levels, a collapse in the exchange rate, and increased prices of goods and services. This is a natural result of the increased money supply and the depletion of necessary foreign reserves for settling international payments.

As for the performance of the so-called central bank in Aden after its fake replication, it has been marked by currency speculation, squandering and misusing foreign reserves, printing money to finance the so-called government's deficit, and flooding the economy with deposits and loans under the pretext of saving the currency and meeting the need for imported goods and services, in addition to widespread corruption. The conditions in areas under the so-called legitimate government's control are a clear testament to this.

The US-Saudi aggressor countries and their mercenaries do not stop at any limit in targeting the central bank, the national currency, and the banking sector. Recently, they have taken escalatory measures targeting the national currency and several banks operating in areas under the control of the Sana'a government. This has been done at the behest of the US-Saudi aggression to pressure Sana'a to change its supportive stance towards Gaza.

The aggressor countries and their mercenaries rely on two main factors for the success of their recent aggressive actions against commercial banks and the national currency. 

Firstly, the inability of the central bank in Sana'a to print new banknotes and provide the necessary liquidity for the national economy and banking system, given the deterioration of the current paper currency in circulation. 

Secondly, what they call international recognition and the support of the aggression countries, led by the United States, to economically pressure the Sana'a authorities, including drying up the hard currency resources necessary to meet essential import needs.

Additionally, they target commercial banks located in areas under the control of the Sana'a government by restricting these banks' ability to conduct international banking transactions. This includes their ability to receive and send international transfers and to open letters of credit necessary to finance international trade transactions.

In this context, it is essential to emphasize that Sana'a has never overlooked the plans of the aggression and its mercenaries aimed at targeting the foundations and components of the national economy. 

Sana'a asserts that it has sufficient means to confront and thwart the plans of the aggressor countries and their proxies. 

Finally, it is crucial to highlight that one of the urgent priorities for the central bank in Sana'a is to regain the bank's ability to control the monetary base, manage currency issuance, build necessary technical and operational capacities, and enhance the conducive environment for the banking sector's activities.

Written by Abdulwahhab Al-Washali, Translated by Almasirah English website