NYN | News
The Food and Agriculture Organization of the United Nations (FAO) has issued a warning about the potential further depreciation of the Yemeni rial in areas under the Presidential Leadership Council, unless comprehensive reforms are implemented to address the trade deficit and strengthen foreign currency reserves.
In its August 2025 report, the organization noted that recent measures by the Central Bank in Aden have temporarily contributed to improving the currency’s value and reducing food prices. However, the impact is described as fragile and may not be sustained.
In August 2025, the rial recorded an average exchange rate of 1,622 rials to the dollar, coinciding with a slight decrease in the cost of the food basket.
FAO warned that the Central Bank’s efforts in Aden to support the local currency may collapse if comprehensive economic reforms are not undertaken to tackle trade imbalances and the shortage of foreign currency.
The report also pointed to inconsistencies in import activity and fuel markets, noting that the overall economic situation remains fragile due to the suspension of salary payments and the decline in agricultural production.
FAO further warned that the crisis could worsen due to natural disasters such as heavy rains, floods, and intermittent droughts, in addition to ongoing conflict, the suspension of some aid programs, and a decline in imports.
The organization stressed the need for close monitoring of economic and humanitarian developments, with particular focus on food prices, government policies, port operations, and regional volatility — all of which have a direct impact on living conditions and stability in Yemen.
