Aden faces severe economic crisis as riyal falls against foreign currencies

SANAA, Jan. 04 (YPA) – Foreign exchange rates continue to climb sharply as the local currency in Aden, as well as in Yemen’s southern and eastern provinces, suffers a severe collapse.

On Saturday, the US dollar now surpassed 2,075 Yemeni riyals in Aden, while the Saudi riyal is trading at 543 Yemeni riyals.

The rapid decline of the local currency has reflected an extraordinary economic crisis in Aden, compounded by the government’s persistent failure to implement meaningful economic reforms, according to Yemeni economic experts.

This currency collapse has had a devastating effect on residents in Aden and other areas under coalition control, leaving many unable to afford basic necessities. The situation is further worsened by the continuous rise in prices of essential commodities, particularly food staples.

Experts attribute the crisis largely to the government’s unrestrained printing of nearly 6 trillion Yemeni riyals between 2016 and 2021 without adequate financial support. This unsound fiscal policy has significantly deteriorated living conditions and pushed many citizens to the edge of famine.

YPA