The Collapse of the Local Currency Hits New Record in South Yemen

Reports

Sat, 04-12-2021 11:00 PM, Aden

Aden (South24)

The decline of the Yemeni riyal touched another lowest record against the foreign currencies in the South Yemen governorates, as the price of the US dollar exceeded 1700 Yemeni riyal while the Saudi riyal scored 450 on Friday.

The collapse is the biggest in months, as the price of the dollar was equal to 1400 Yemeni riyals while the Saudi riyal reached about 356 in early November.

In early June this Year, there were successive collapses in the price of the Yemeni riyal, when the dollar exceeded the level of 1000 Yemeni riyals. 

In a statement, “the Aden Exchange Dealers Association” suspended its activity as of Saturday until Monday due to the collapse of the riyal.

The decline of the riyal’s value has had its tragic impact on the prices in the Southern governorates, especially those of food commodities which witnessed up to 300% increase. 

United Nations’ reports warned of a humanitarian disaster caused by this accelerating and ongoing collapse of the Yemeni riyal which affects the prices of the basic food commodities. 

Observers said that the gap in the Yemeni riyal prices between Sana’a, controlled by the Iran-backed Houthis, and Aden has worsened the crisis in South Yemen. 

The price of the riyal in Sana’a has been stabilised at the level of 600 against the dollar, and 158 against the Saudi riyal after the Houthi refusal to deal with the new currency two year ago.

Southern activists called for the dismissal of the Yemeni Central Bank’s Board of Directors in Aden, accusing them of corruption and failure, by using the Hashtag “My demand is to liberate the Central Bank”.

Economic experts indicated that the refusal of the governorates, controlled by the islamic Islah Party, to transfer their revenues to the Central Bank in Aden is one of the basic reasons behind the economic deterioration and the fall of the currency. 

Angry protestors blocked streets in Al Mukalla, the biggest city of the oil-rich Hadramout governorate, denouncing the worsening living conditions and the collapse of the riyal.

- South24 Center for News and Studies

Photo: Reuters

Yemeni Riyal South Yemen Aden US dollar