NYN | News
The British news agency “Reuters” has shed light on the economic crisis, the rise in food prices, and the collapse of the Yemeni riyal, which are being witnessed in the city of Aden and other cities and governorates under the control of the government of Ahmed bin Mubarak, supported by the Saudi-led coalition.
The agency published a report on Sunday titled “Yemen’s crises deepen as riyal collapses against dollar in the south,” which quoted traders and money exchange companies as saying, “The value of the Yemeni riyal has recorded a significant decline against the dollar and foreign currencies on Sunday in the coastal city of Aden and the southern and eastern governorates of Yemen.”
It indicated that “this comes amid an unprecedented wave of inflation and rising food prices, which portends an economic catastrophe and famine that international and local organizations have previously warned about.”
The agency said that “the dollar rate has exceeded the threshold of 1720 riyals, the lowest level of the Yemeni currency in about two years,” adding that “this coincides with a severe electricity crisis that is exhausting the population in Aden and the neighboring governorates with the onset of summer and temperatures exceeding 36 degrees Celsius.”
The Reuters report stated: “The value of the local currency is currently collapsing, despite the resumption of the Yemeni Central Bank’s auctions to sell foreign currency to commercial banks after receiving two installments of the economic support announced by Saudi Arabia for the internationally recognized government in Aden.”
It also quoted a money exchange office in Aden as saying that “the exchange rate in the parallel black market on Sunday evening exceeded the barrier of 1720 riyals for purchase and 1730 riyals for sale, a difference of 70 riyals from the exchange rate a week ago and 120 riyals a month ago.”
It noted that “this is the lowest value the local currency has recorded since the announcement of the transfer of power and the formation of the Presidential Leadership Council in April 2022, with the support of the Saudi-led coalition.”
Reuters says that “a senior official at the Central Bank in Aden declined to comment on the reasons for the continued collapse of the currency’s value, saying, ‘Measure the current decline in the exchange market and you will find that it is negligible in a situation that is the worst ever for a country without resources, dependent on the Central Bank to cover its obligations.'”
The agency indicates that “despite the cessation of fighting to a large extent with the Iran-allied Houthis in northern Yemen during the past year, the Saudi-backed government in Aden is suffering due to the decline in the value of the currency, the shortage of foreign reserves, and the rise in prices.”
It spoke about the stability of exchange rates in the areas controlled by the Sanaa government, saying: “The riyal exchange rates in the capital and the areas under the control of the Houthi group in the north of the country remain stable at 530 riyals to the dollar, according to banking sources.”
