Yemen’s currency has hit a record low in areas under the control of Yemen’s internationally recognized government as the Aden-based Central Bank of Yemen fails to bring the exchange system under its control.
The Yemeni riyal hovered around 1000 against the US dollar on Sunday amid skyrocketing prices of food, goods, and basic services.
The currency’s freefall takes the impoverished nation to the brink of famine as the Yemeni government seems to have lost control over maintaining a fixed exchange rate.
This comes amid heavy fighting between government forces and Houthis in the provinces of Al-Bayda, Marib, and Al-Jawf as well as escalations in south Yemen by southern separatists loyal to the UAE-backed Southern Transitional Council.
On December 18, a new power-sharing government was announced based on the Riyadh Agreement. The formation of the government helped the riyal to bounce back from 860 to 675. However, it did not take long for the rial to collapse again after the new government failed to bring about any economic or security changes on the ground.
Since 2015, Yemen has been beset by the war, which triggered the worst world’s humanitarian crisis in recent history.
Editing by Sami Almaqtari