Press Release No. 96/65

Press Release: Republic of Yemen Accepts Article VIII Obligations

December 26, 1996

The Government of the Republic of Yemen has notified the International Monetary Fund (IMF) that it has accepted the obligations of Article VIII, Sections 2, 3, and 4 of the IMF Articles of Agreement, with effect from December 10, 1996. IMF members accepting the obligations of Article VIII undertake to refrain from imposing restrictions on the making of payments and transfers for current international transactions or from engaging in discriminatory currency arrangements or multiple currency practices without IMF approval. A total of 136 countries have now assumed Article VIII status.

By accepting the obligations of Article VIII, Yemen gives confidence to the international community that it will pursue sound economic policies that will contribute to the achievement of two of the purposes of the IMF, as stated in its Articles of Agreement: the establishment of a multilateral system of payments in respect of current transactions, and the expansion and balanced growth of international trade, and thereby the promotion and maintenance of high levels of employment and real income. For Yemen, the acceptance of Article VIII obligations can be expected to facilitate its international trade and to improve the economy's attractiveness to foreign investors.

Yemen's membership in the IMF dates from May 22, 1990. Its quota is SDR 176.5 million (about US$254 million).