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 Strengthening the Employment Impact of an MDG-Based Development Strategy for Yemen
International Poverty Centre 15 m onetary policies. Appreciation of the exchange rate encourages capital outflow s, w hich can rob Yem en of potential developm ent resources. H ence, the Central Bank should regulate the capital account. A priority w ould be to restrict com m ercial banks f...
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International Poverty Centre 15 m onetary policies. Appreciation of the exchange rate encourages capital outflow s, w hich can rob Yem en of potential developm ent resources. H ence, the Central Bank should regulate the capital account. A priority w ould be to restrict com m ercial banks from investing in financial assets abroad. This w ould help prevent the leakage of foreign exchange, generated by oil revenues or ODA, out of the econom y. ALLOCATING RESOURCES TO PRIORITY SECTORS The second
17 0 http://www.undp-povertycentre.org/pub/IPCCountryStudy4.pdf#page=17 www.undp-povertycentre.org/pub/IPCCountryStudy4.pdf#page=17
International Poverty Centre 15 m onetary policies. Appreciation of the exchange rate encourages capital outflow s, w hich can rob Yem en of potential developm ent resources. H ence, the Central Bank should regulate the capital account. A priority w ould be to restrict <span class="highlight">com</span> m ercial banks from investing in financial assets abroad. This w ould help prevent the leakage of foreign exchange, generated by oil revenues or ODA, out of the econom y. ALLOCATING RESOURCES TO PRIORITY SECTORS The second