Yemeni currency devaluation persists, despite new leadership

by | Jun 28, 2022 | World

A truce between Yemen’s internationally recognised government and the Houthi rebels has helped bring a semblance of stability to the country since it began at the start of April, considerably reducing hostilities on the country’s front lines, and making many Yemenis hopeful that an end to the war could be in sight.But Yemen’s economy, and in particular its currency, continues to struggle, leaving millions of Yemenis in poverty, and casting doubt on the capability of the government’s Presidential Leadership Council (PLC), which was sworn in on April 19.
At the time, the Yemeni rial experienced a welcome boost in its value, but the sudden rebound of the riyal has been short-lived, and its value has dropped once again.
In government-held parts of the country, $1 is exchanged for 1,100 Yemeni rials, an unofficial rate that is used by all money exchangers, and is similar to the level before the PLC bounce.
That is despite a pledge of $3bn from Saudi Arabia and the United Arab Emirates to prop up the Yemeni economy.
“The national currency devaluation is unlikely to be fixed soon, and this crisis persists for multiple reasons,” Wafeeq Saleh, a Yemeni economic researcher, told Al Jazeera.
“The new leadership and the [government-run] Central Bank of Yemen in Aden (CBY-Aden) need to introduce stricter financial and monetary measures to control and mon …

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