The Central Bank Governor emphasizes the significance of establishing the Yemeni Payments Company for modernizing the financial sector.

Central Bank Governor Highlights Launch of Yemen Payment and Clearing Company

A Milestone in Financial Sector Modernization

The Governor of the Central Bank of Yemen, Ahmed Ghaleb, announced that the launch of the Yemen Payment and Clearing Company marks a pivotal moment in the modernization of Yemen’s financial and banking sector. This initiative represents a strategic step towards developing a sophisticated national infrastructure for payment, clearing, and settlement systems, adhering to international best practices and standards.

Inauguration Ceremony in Aden

The announcement came during the inaugural meeting of the company’s founding assembly held on Monday in Aden, the temporary capital. The event saw the participation of the Minister of Industry and Trade, Mohammed Al-Ashwal, along with bank officials, representatives from the United Nations Development Programme (UNDP), and various commercial, Islamic, and microfinance banks.

Vision for National Payment System

Governor Ghaleb emphasized that establishing the company embodies the Central Bank’s vision to enhance the national payment system. He noted that this system serves as a fundamental pillar for strengthening financial stability, improving banking sector efficiency, and supporting economic growth.

Complementing Recent Restructuring Efforts

He added that the launch of the Yemen Payment and Clearing Company complements last week’s significant restructuring of the Unified Money Network Company. This restructuring aims to enhance the integration of the national payment system’s components, improving its efficiency, reliability, and ability to keep pace with rapid technological advancements in this vital sector.

Facilitating Financial Transactions

Governor Ghaleb highlighted the company’s crucial role in developing and operating the national infrastructure for payment and clearing systems. This development will facilitate and expedite financial transactions, enhance the efficiency of clearing and settlement operations between banks, expand the use of electronic payment methods, reduce transaction costs, and provide faster, safer, and more reliable financial services for individuals and businesses.

Call for Collaborative Efforts

He stressed that the success of this national project requires genuine partnerships between the Central Bank, banks, financial institutions, and payment service providers. Commitment to the highest standards of governance, compliance, and risk management will ensure the company’s sustainability and the achievement of its objectives.

Acknowledgment of Support

Governor Ghaleb expressed his sincere gratitude to the World Bank for its support and funding of this strategic project, as well as to the UNDP for its efforts in implementation and the technical and institutional support that contributed to reaching this significant milestone.

UNDP’s Continued Support

Maher Shukri, a representative from the UNDP, outlined the stages of the company’s establishment, including preparatory work and consultations conducted in collaboration with the Central Bank, the World Bank, and various financial partners. He confirmed that the UNDP will continue to provide technical and institutional support to the company in the upcoming phase, enabling it to efficiently fulfill its responsibilities and contribute to the development of the national payment system and serve the Yemeni community and economy.

Formation of the Board of Directors

During the meeting, the founding assembly elected the company’s first board of directors and appointed the legal auditor. The assembly affirmed that establishing the Yemen Payment and Clearing Company represents a significant national achievement and a foundational element in building a modern financial system that enhances payment services, promotes financial inclusion, supports the banking sector, and bolsters the national economy.

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