Exchange company in Aden declares withdrawal of its licenses

  ADEN, Aug. 09 (YPA) – An exchange company operating in the coalition-controlled city of Aden announced on Saturday its withdrawal from the financial market, following the Yemeni riyal’s apparent stability against foreign currencies.

Al-Kashimi Exchange and Remittances, headquartered in the Khormaksar area of Aden, affirmed in a statement its reluctance to engage in the exchange business.

This came days after a sudden drop in foreign currency exchange rates. The lack of a real influx of foreign currencies (US dollars and Saudi riyals) into the local market has prompted warnings of devastating economic results.

The statement called on the relevant authorities in Aden to withdraw its bank guarantee and revoke all licenses.

Economic observers considered the imposition of new foreign exchange rates by coalition-backed authorities based on improvised political decisions without any economic reforms a severe blow to exchange companies, threatening with bankruptcy due to temporary cosmetic measures.

They emphasized that the sudden rise of the Yemeni riyal’s value in Aden and other southern provinces was not based on sound economic foundations, making it vulnerable to a catastrophic reversal once demand for foreign currencies returns.

AA