Yemen: Challenges and opportunities for recovery in the Yemeni financial sector

The report is a collaboration between ACAPS Yemen Analysis Hub (YAH) and Mercy Corps Yemen Analysis Team (YAT).

The Yemeni financial sector plays a critical role in facilitating trade and import financing, providing banking services to the humanitarian and development sectors, and processing remittance flows into Yemen. With the Yemeni economy’s import dependence and highly centralised nature, political control over Yemeni monetary and financial regulatory bodies and sources of foreign exchange (FX) supply are likely to play a key role in any peacebuilding discussions.

The purpose of this thematic paper on the Yemeni financial sector is to deepen stakeholders’ understanding of the structure of that sector by highlight its complexities and risks. The paper intends to function as a foundational document and, as such, will not go into details about any single component.