Sudden reforms in Aden get between US threat, inevitability of collapse
ADEN, Aug. 04 (YPA) – The coalition-affiliated Aden government is moving to raise the customs tariff for the dollar from $700 to $1,400, a dramatic move stemming from direct US interference in the Yemeni economy, following the transfer of control of the Aden-based Central Bank of Yemen to the US Treasury.
Economic observers expected the decision to take effect in the coming days, leading to a new wave of price increases, especially after what they described as “illusory” reforms aimed at improving the value of the local currency. These reforms lack a real vision for addressing the root causes of the crisis.
Some experts emphasized that the sudden decisions to reduce the exchange rates of foreign currencies such as the dollar and the Saudi riyal, forcefully close exchange companies, and impose mandatory price cuts were not accompanied by any structural reforms. The liquidity crisis in the banking market may continue due to the withdrawal of foreign currency from citizens without selling it to them.
Separately, the United States issued a clear warning to the Aden government, giving it 90 days to implement comprehensive reforms, including combating rampant corruption in Aden and the southern governorates, following the direct intervention of the US Treasury in the management of the Central Bank.
Saif al-Muthanna, executive director of the Washington Institute for Strategic Studies, confirmed that the American deadline has already begun, noting that the recent statement by the US embassy emphasized the need to implement reforms “free from political interference.”
The United States also threatened to blacklist any official in the Presidential Leadership Council (PLC) and the Aden government who obstructs the economic reform process and the improvement of the local currency exchange rate, including exchange companies and commercial banks, during direct meetings with them in the Saudi capital, Riyadh, in early August.
Others, however, believed that the US economic reforms in Aden conceal conditional political and military bets and dictates on the PLC and the Aden government. This came after Washington’s failure to confront Sanaa-based armed forces in the Red Sea in recent months and the cessation of Saudi monetary support for that government, which has contributed to a comprehensive collapse in services and living conditions.
Businesses in Aden and other southern provinces are increasingly concerned about these sudden developments and the potential for economic collapse in the absence of effective rescue plans. While economists are considering these reforms merely a postponement of the inevitable collapse in Aden in the coming months, following angry popular protests demanding the expulsion of the coalition.
AA