AFP
The Biggest Collapse of the Yemeni Riyal Since the Formation of the PLC
News
Wed, 12-07-2023 08:10 PM, Aden
Aden (South24)
The value of the Yemeni riyal in the capital, Aden, and other government areas fell to its lowest level since the formation of the Presidential Leadership Council (PLC) in April 2022.
On Tuesday, the price of the US dollar reached 1485 Yemeni riyals for purchase and 1500 Yemeni riyals for sale before it decreased today, Wednesday, to 1420 Yemeni riyals for purchase.
Yesterday, the price of the Saudi riyal reached 393 Yemeni riyals for purchase, and 397 Yemeni riyals for sale. However, it also suddenly decreased today to around 374 for purchase.
As a result of this accelerated collapse, the prices of food products have climbed in the markets. Hadramout Governor Mabkhout bin Madi gave instructions to stop buying or selling foreign currencies.
In a statement, Aden's Central Bank accused the Houthis of standing behind the recent accelerated local currency collapse.
The bank said they were waging an economic war against the government.
Since last November, oil production and exports have stopped in southern Yemen due to Houthi drone strikes targeting Shabwa and Hadramout oil ports.
In previous reports by "South24 Center", economic experts warned of economic ramifications due to the cessation of oil exports, foremost of which is the accelerated collapse of the local currency.
Moreover, experts accused the Yemeni government, led by Maeen Abdulmalik, of exacerbating the problem due to the lack of fundamental economic, financial, and monetary reforms, the spread of corruption, and the absence of oversight.
On Wednesday, PLC Chairman, Rashad Al-Alimi, pledged that the Yemeni government will intervene to regain control over the currency exchange market and provide basic commodities and services to citizens.
During his meetings with the French Ambassador to Yemen, Jean-Marie Safa, in Riyadh, Al-Alimi said that the government will do this with the support of Saudi Arabia, the UAE, and regional and international partners.
The Yemeni riyal reached its lowest level in December 2021 before it improved in early 2022 after naming a new administration for Aden's Central Bank.
- South24 Center.