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FAO Warns of Currency Decline and the Return of Inflation in Aden Government–Controlled Areas Bleak Food Security Outlook Through February 2026

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The United Nations Food and Agriculture Organization (FAO) has warned of the continued deterioration of the food situation in Yemen, stressing that the risks of currency depreciation and the return of price inflation in areas controlled by the internationally recognized Aden-based government remain high unless the roots of the economic crisis are addressed.

In its new report published Monday, the organization stated that food security projections in Yemen remain “extremely bleak” across all governorates, with severe challenges expected to persist through February 2026.

FAO explained that the recent improvement in the value of the Yemeni rial in government-controlled areas has not proven sustainable, warning that any renewed decline in the currency would trigger a new wave of inflation unless comprehensive economic reforms are implemented to address the trade deficit, weak foreign currency reserves, and the shortage of U.S. dollars in circulation.

In areas controlled by the Sanaa government, the organization noted that the situation is affected by several factors, most notably: reduced rainfall, frost waves, escalating conflict, and declining import levels—all of which increase the fragility of food security.

According to the latest Integrated Food Security Phase Classification (IPC) analysis, FAO expects that more than 18 million people—about half of Yemen’s population—will continue to suffer from acute food insecurity through February 2026, with the number likely to remain high or even increase as economic and climatic risks persist.

The report noted that wheat imports through northern ports recorded an increase in October, while imports through southern ports declined compared to September. Fuel imports also saw a slight rise at Ras Issa port, while decreasing in Aden and Mukalla, amid the impact of airstrikes that reduced the handling capacity of northern ports and negatively affected overall import flows this year.


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