The impact of monetary policy on achieving stability of the exchange rate in Yemen

Abstract

 The research deals with the impact of monetary policy and the effectiveness of its tools in achieving stability of the exchange rate in Yemen.  In the period from 1995 to 2004 AD, through Yemen's adoption of the program of financial and economic reform;  This is done through the theoretical presentation method in addition to the analytical descriptive approach, knowing the concepts related to monetary policy and the exchange rate, and analyzing the impact of monetary policy on achieving the stability of the exchange rate, by addressing the time stages before and after the implementation of the financial and economic reform program;  And the reference to the most important factors that contributed to achieving the stability of the exchange rate and its impact on the Yemeni economy, and the results of the research also highlighted the impact of monetary policy on the stability of the exchange rate, by reviewing some financial statements of the Central Bank of Yemen in achieving relative stability in the exchange rate and the growth rate of domestic liquidity and reserves  external and in the growth of the money supply;  In addition to the recommendations on the need to follow a more effective monetary policy to control the monetary mass, and also to grant the Central Bank of Yemen greater independence, in a way that contributes to the monetary policy reaching the ultimate goal of achieving exchange rate stability.