Aden merchants refuse to deal in new currency
ADEN, April 05 (YPA) – Many traders and commercial companies in Aden province, southern Yemen, have stopped dealing in the new banknotes that “Hadi’s government” had printed in Russia.
This step taken last week by merchants and some companies had pushed many citizens to request the old currency and deal in foreign currencies, most notably dollar, and Saudi riyal, local sources reported.
Dealing in foreign banknotes has spread strongly after the deterioration of the value of the Yemeni riyal due to the printing of billions by Hadi’s government without having enough reserves, in addition to the poor quality of the new currency, which is quickly damaged, according to the sources.
The sources affirmed that the phenomenon of stopping dealing in the local currency and replacing it with foreign currencies has led to a significant increase in prices, especially in the real estates field, such as apartment and shop rents, the purchase of building materials, and the sale and purchase of cars.
Merchants abstain from dealing in the new currency because it is easy to counterfeit, referring that large amounts of counterfeit currency were discovered.
A recent report issued by the United Nations experts accused Hadi’s government backed by Saudi-led coalition of corruption and money laundering after it had printed more than two trillion riyals without reserves cover and pumped them into the market.