NYN | News
In a scathing economic analysis, economic expert Waheed Al-Fawdi, who supports the Aden government, revealed a significant gap in the misleading comparisons promoted by supporters of the Saudi-UAE coalition between prices in Sana’a and Aden. He emphasized that comparing prices in Saudi riyals is futile, referring to it as “plowing the sea,” implying that it’s impossible to assess the living conditions based on a foreign currency amidst the collapse of the local currency in coalition-controlled areas.
Al-Fawdi explained in a Facebook post that the price of a bag of flour in Aden is 85 Saudi riyals (equivalent to 51,000 Yemeni riyals), whereas in Sana’a it costs 100 Saudi riyals (with a fixed exchange rate equivalent to only 14,000 Yemeni riyals).
He added: If the price of the Saudi riyal in Aden rose to 2,000 Yemeni riyals (instead of 600), the price of the flour bag would rise to 170,000 Yemeni riyals, while it would remain at 14,000 in Sana’a!
Al-Fawdi asked: If flour in Aden is cheaper in Saudi riyals, why don’t we all live in Saudi Arabia? He sarcastically commented: If this logic were true, I would quit economic analysis and return to my home!
He confirmed that the real comparison should be made in the local currency because citizens spend Yemeni riyals, not Saudi riyals. He pointed out that the coalition is destroying the economy through rampant inflation, while Sana’a maintains relative stability despite the war.
Despite international blockade and ongoing aggression, data shows that areas under Houthi control (Ansar Allah) have excelled in preserving the value of the Yemeni riyal. The exchange rate has remained stable for years at about 534 riyals to the dollar, while it has collapsed in Aden to 2,306 riyals, leading to catastrophic inflation in prices.
Al-Fawdi noted that some people are insistent on distorting awareness by concealing the truth that Yemenis do not receive their salaries in Saudi riyals.
The expert warned that continued disregard for the impact of exchange rates on the purchasing power of citizens in coalition-controlled areas will lead to “swallowing what remains of Yemenis’ savings,” adding: Even if the price of a flour bag in Aden reaches one million Yemeni riyals, some people will still claim it’s cheaper than in Sana’a because it costs 85 Saudi riyals.
Al-Fawdi concluded his post with a strong message: “We are in Yemen, not in Saudi Arabia. The comparison should be made in the currency we live with, not the one you are struggling to promote its dependence.”
