Yemeni Riyal Value Drops 8% in One Month

Reports

Wed, 07-06-2023 03:08 PM, Aden

Aden (South24)

The value of the Yemeni riyal decreased against the US dollar to 1335 riyals per US dollar on June 7, compared to 1231 riyals per US dollar in early May.

This percentage, which is estimated at about 8% of the value of the Yemeni riyal, is the worst in months when the value of the Yemeni riyal remained between 1110-1200 riyals per US dollar.

This drop comes months after the cessation of oil exports from South Yemen, following attacks by the Houthi militia in October and November that targeted oil ports in Hadramout and Shabwa.

The Yemeni government accuses the Houthis of "destructing" the Yemeni economy by imposing many measures in areas they control. On the other hand, the government faces charges of failing to perform its duty, implement the required reforms, and spread corruption.

In a statement, today, the Central Bank of Yemen in the capital city Aden denied rumors about the depletion of foreign currency reserves.

The bank stated that it has foreign exchange reserves in a number of international banks sufficient to cover and secure the need and to cover the import of basic commodities into the country.

On May 26, the Chambers of Commerce in Sanaa accused the Houthis of harming the private sector. The Iran-backed Houthis had also been preventing wheat shipments imported through the port of Aden from entering North Yemen for weeks.

Meanwhile, the Yemeni government held meetings in Jordan's capital city Amman, at the beginning of this month with the International Monetary Fund, with the aim of reviewing the state of the Yemeni economy and the progress in implementing financial reforms.

The Yemeni Nutrition Movement also held its first national meeting in Amman to discuss addressing malnutrition in Yemen, in the presence of representatives from civil society, the private sector, United Nations organizations and donors.

The Yemeni riyal had reached the largest collapse in history in December 2021 at 1,750 riyals per US dollar, before the exchange rate improved with the naming of a new administration for the Central Bank of Yemen.

During 2022, the Yemeni riyal maintained relative stability with the formation of the Presidential Leadership Council in Yemen and the Gulf support announcement of about $3 billion in the form of oil deposits and grants last April.

The arrival of the joint Saudi-Emirati deposit was delayed until the last quarter of 2022, after talks on required financial and monetary reforms by the Yemeni government.

There are concerns about the repercussions on the lives of the people in South Yemen, in light of the continued halt in oil exports and the connection of this file with the political talks with the Houthis to reach a new agreement.

According to the United Nations, millions of Yemenis live below the poverty line in the worst humanitarian crisis in the world, amid waves of internal displacement concentrated in the capital city Aden and the city of Marib.

Yemeni riyal and US dollars (Move 2 Turkey News)

Yemeni Riyal Value Drops 8% in One Month