After the putschists drained the Central Bank's cash reserve of five billion dollars! which accumulated over years between surplus and deficit balance of payments as well as deposits pumped by friendly countries, especially Saudi Arabia, the real national currency became uncovered and unable to defend itself and prone to collapse at any moment.
The drivers of the collapse have met in an unparalleled manner in the history of any other country:, currency without cash reserve, collapse of the economy system, including exports, diaspora remittances, external support and borrowing, and the division of the economic and financial market with the major part of the Economic market finances are in the hands of the putschists and beyond the policy and performance of the legitimate government, and more seriously, the financial market with all its instruments and mechanisms is not subject to uniform policy and administrative procedures.
The economy has become against all “the Economy of War”, and how Economics of War are managed, It is also known as additional tools other than the usual financial, economic and administrative tools to avoid major collapses.
What happened to currency is the product of these factors, conditions and policies that prevailed the economic and financial markets and currency, though it was possible to avoid reaching this level of disaster by taking a number of actions that could still be taken to accompany the deposit of 2 billion From Saudi Arabia until the main goal of this is to stop the deterioration of the currency with the deterioration of the real value of wages and incomes in general and consequently the living life of the people.
These actions are:
1) reconsider the floating system currency that was taken almost a year ago and had to be thought out well before taking it, because the float needs a financial market that is stable and accompanying tools, which are not available in the current conditions in the Yemeni economy, so the float did not induce the effects to be paid by the development of foreign income resources and even reversed the Exchange Rate of the Yemeni national currency.
2) Calculate the median Exchange Rate of the currency between the old price and the recently settled price, which is an indication of the importance of currency stability at this level by intervening strong state to set the price at this level and administrative procedures that reflect the need for a war economy, because the intervention by means of financial and monetary instruments in the present time will not result in outcomes that maintain the value of the currency and the real value of wages and incomes in general.
3) Seriously consider finding tools to protect the economic and monetary measures that the government will take by pressing the putschists by the United Nations that these procedures should be adhered to and coordinated through an economic and financial intermediary designated by the United Nations for this purpose.
4) The private sector, especially the monetary worker, must play a positive role in this circumstance to prevent the disruption of monetary policy by the Government, and through their representative chamber, a daily joint working group is established with the central bank and engages in consultations with commercial banks on a regular basis.