What does BYC mean in BANKING

The BCY regulates the country's monetary policy, issues currency, and manages foreign exchange reserves. It also seeks to maintain economic and financial stability, promote economic growth, and ensure financial soundness.

The BCY manages foreign exchange reserves by utilizing a variety of tools such as open market operations, reserve requirements on deposits, reserve requirements on loans, rediscounting facilities, forward contracts, swaps and other derivative instruments.

The primary objectives of the BCY are to maintain price stability, promote sustained non-inflationary economic growth and full employment, reduce external imbalances in balance of payments accounts, while protecting the domestic currency from significant devaluation or revaluation Risk.

The BCY uses various methods such as setting interest rates on deposits made at commercial banks; setting reserve requirements for both commercial banks and non-bank institutions; imposing capital controls; using open market operations; offering liquidity support to commercial banks; establishing purchasing programs for government securities; issuing treasury bills, etc. These measures all aim at controlling money supply in order to achieve macroeconomic goals.

External factors affecting Yemeni economic performance include political instability leading to low investment levels from abroad due to security concerns; volatile global oil prices which affect export revenues; weak infrastructure including inadequate banking system safety nets that contribute to unstable capital flows; large internal migration which can have both positive and negative effects on labor markets domestically. All these factors have an impact on Yemeni monetary policy decisions taken by the BCY.