Yemeni riyal continues to collapse in southern provinces, settles in Sanaa

SANAA, Jan. 12 (YPA) – The Yemeni riyal on Sunday continued to recover against foreign exchange rates in the capital Sanaa to reach 584 riyals per dollar, after the decision of the Central Bank in Sanaa to prevent the circulation of illegally printed currency.

This came at a time the exchange rate of Yemeni riyal continues to collapse increasingly in the occupied southern provinces, reaching 641 riyals per dollar for the first time in Aden province.

Last month, the Central Bank in Sanaa decided to withdraw the illegal printed currency by Hadi’s government without cover from the areas located under the control of the Supreme Political Council, and gave citizens a one-month-deadline ending on January 18 to compensate the banned new currency in their possession.

The Yemeni riyal exchange rate has recently devalued as a result of the ongoing conflict between militias loyal to Saudi Arabia and the UAE in the occupied southern provinces of Aden and Abyan.

In turn, banking sources attributed that to arbitrary decisions that had been taken by former governor of central bank in Aden Hafedh Meayad.

Observers saw that those decisions have increased the sharp inflation in the Yemeni economy, which had already suffered from the collapse due to the restriction of foreign imports and the movement of goods internally between the provinces and externally to and from Yemen, as well as flooding the Yemeni market with banknotes printed in Russia without a financial cover.

YPA