Pro-coalition government takes desperate measures to save currency from collapse in Aden

ADEN, April 29 (YPA) – Banking sources confirmed that the Central Bank of Aden has suspended all foreign currency sales and purchases until further notice, as the Yemeni riyal continues to collapse.

They explained that the measures taken by the bank are a failed attempt to halt the sharp and unprecedented decline in the local currency’s exchange rate against the US dollar and the Saudi riyal, resulting from speculation in the exchange market.

The sources stated that the bank’s measures followed pressure from the Money Changers Syndicate in Aden to stabilize the local currency, which is experiencing a frightening collapse, the first in Yemen’s history in areas under the Saudi-led coalition control.

They added that the decision to suspend foreign currency transactions against the Yemeni riyal includes all banks and financial institutions operating in Aden, after the selling price of the US dollar approached 2,600 Yemeni riyals.

According to the sources, most wholesalers announced the sale of their goods in Saudi riyals due to the instability of the Yemeni riyal, which has been witnessing a sharp decline due to the failed economic policy pursued by the pro-coalition government since the transfer of the Central Bank of Yemen from Sanaa to Aden at the end of 2016.

The economic and service collapse in Aden and other Yemeni provinces came after the pro-coalition government printed nearly 6 trillion Yemeni riyals without any cash cover to cover its financial expenses between 2016 and 2021.

YPA