Foreign Exchange Control

There are no limits or controls on the transfer of funds into and out of Yemen or on funds garnered from an investment in Yemen. Any individual or company may import foreign currency into Yemen; exporting currency out of Yemen should not exceed USD 10,000 unless otherwise approved by the Central Bank. Again, CBY does not impose restrictions on foreign payments and transfers and allows the transfer of foreigners’ accounts resulting from foreign transactions. Commercial banks and private exchangers are allowed to purchase foreign currency from customers and to hold a percentage of foreign exchange for import payments. There are no taxes on purchases or sales of foreign exchange.

The Yemeni rial has floated freely since 1996, and the exchange rate was stable in the 174-175YR/1USD range until October 2002. After falling to 182-183 YR/1USD by the end of 2002, the rial has remained relatively stable. At the end of 2007, the rial sold at a market rate of 199 YR/1USD. In order to evaluate imports for tariff collection, the Customs Authority bases its calculation on a monthly average exchange rate published by the Central Bank of Yemen set to the prevailing market rate.