Forex trading in Yemen operates in a complex and fragmented regulatory environment due to the ongoing conflict and divided governance structures. The Central Bank of Yemen based in Aden serves as the primary monetary authority responsible for implementing monetary policy, banking supervision, and managing foreign exchange operations (1). According to Article No. 5 of the Law of the Central Bank of Yemen, the main objective of its monetary policy is to achieve price stability and maintain the stability of the national currency, though these goals have been severely challenged by the conflict.
Yemen has implemented strict foreign exchange controls to stabilize its currency amid severe economic challenges. As FX supply declined and currency speculation grew in 2025, the government established a National Committee for the Regulation and Financing of Imports in July to enhance import transparency and channel FX into the formal banking sector (2). Additional temporary measures included limits on foreign currency exchanges, prohibition on using foreign currency for local transactions, and revocation of licenses for money exchangers suspected of currency manipulation.
"As FX supply declined and currency speculation grew in 2025, the government established a National Committee for the Regulation and Financing of Imports to enhance import transparency and channel FX into the formal banking sector."
While forex trading is not explicitly illegal in Yemen, the practical regulatory environment makes it extremely difficult for retail traders. The Central Bank has imposed maximum limits of $2,000 USD for any single transfer or currency sale, and foreign currency transactions are heavily restricted (1). International sanctions, banking sector challenges, and critically low foreign reserves have created significant barriers to accessing forex markets. Yemeni residents interested in forex trading face substantial regulatory uncertainty and should be aware that the government has prohibited the use of foreign currencies in domestic commercial and service transactions.
Source:
https://english.cby-ye.com
https://www.imf.org/en/News/Articles/2025/10/09/imf-cs-yemen-2025-imf-article-iv-mission
Last updated: 15-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
