Yemen Monitor/News Room
The Yemeni Rial has continued to decline sharply against the dollar and hard currencies, to exceed the barrier of 1,755 Rials per Dollar in Aden and southern and eastern provinces of the country.
Banking sources said that the Yemeni Rial has reached 1,750 Rial for 1$, while the exchange rate of the Saudi Riyal has reached 464 Rials, the lowest level for the Yemeni currency in nearly two years, amid an unprecedented wave of inflation and rising prices.
This is the lowest value recorded by the local currency since the announcement of the transfer of power and the formation of the Presidential Leadership Council in April 2022.
This comes despite the resumption of auctions by the Central Bank of Yemen to sell foreign currency to commercial banks days after receiving two batches of economic support announced by Saudi Arabia for the internationally recognized Yemeni government.
It also comes after only two months after Saudi Arabia announced economic support for Yemen worth $1.2 billion to address the budget deficit, due to the suspension of oil exports as a result of Houthi attacks on ports in Hadramawt and Shabwah.
In February of this year, Saudi Arabia deposited one billion dollars in the account of the Central Bank of Yemen, but these deposits did not contribute to resolving the crisis of the collapse of the national currency.
The leadership of the Central Bank acknowledged at the time that these steps were not enough to address the difficult economic conditions.
The Yemeni government has previously announced measures to address the currency crisis on many occasions, but it is facing difficulty in stopping the continuous deterioration.
