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Beware of the failure of Yemen’s central bank

The Central Bank of Yemen continues to set new policies to tackle the rising inflation and devaluation of the Yemeni rial, knowing its policies will not be effective as long as there is no political will to stabilize the situation.

For the past 18 months, Yemen has been going through one of the most chaotic times of its modern history. Since the Houthi takeover of the capital, Sanaa, on Sept. 21, 2014, the country has been witnessing a gradual collapse of the state, which was accelerated when President Abed Rabbo Mansour Hadi left Sanaa for Aden and then for Riyadh. By March 2015, the Houthi rebel group was the de facto power running the country.

As the war continues, most of the country’s public institutions are barely functioning. The health sector cannot provide for the wounded and the sick with three doctors per 10,000 people, while 14 million people need help accessing health care. Education in schools and universities has been interrupted by the many rounds of fighting, and around 1.8 million Yemeni children are out of school because of the ongoing war.

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