Yemen Posts Rapid Currency Recovery
(MENAFN) Yemen’s national currency sharply appreciated on Monday, climbing to 1,617 rials per U.S. dollar in government-administered regions—a staggering 40% surge from recent lows near 2,900 rials. The rapid rebound has sparked cautious optimism in a nation battered by years of economic collapse and ongoing conflict.
According to banking sources, the rally followed decisive action by the Central Bank of Yemen in Aden, which revoked the licenses of 24 currency exchange firms for manipulating rates. The bank has also imposed stricter regulatory oversight to stabilize the financial market.
Over the weekend, Prime Minister Salem Bin Buraik directed multi-agency inspection teams to enforce corresponding price cuts, warning merchants of penalties for non-compliance.
"Any improvement in the currency exchange rate must be accompanied by a corresponding decrease in the prices of basic commodities, especially those imported by major traders and suppliers in foreign currencies," he was quoted as saying by a local news agency.
Despite the rial’s dramatic climb, instability persists in parts of the country. In Hadramout province, week-long demonstrations over worsening electricity outages and soaring living costs have paralyzed daily life. Commercial operations and transportation have ground to a halt in the provincial capital, Mukalla, where confrontations between protesters and security forces have further disrupted economic activity.
Public reaction to the currency's recovery has been mixed. Ahmed Sadiq, a resident of Aden's Mansourah district, said the improved rate restored a level of purchasing power “absent for several years.” Hazim Radfani described the development as “a sign of more effective government economic management,” expressing hope for lasting economic stability. Meanwhile, Salma Ba-Saleh noted “a small change” in consumer prices, adding that “life is still hard.”
Economic observers emphasized that while the rial’s rebound is encouraging, the benefits have yet to fully reach average citizens.
"While currency stabilization has generated considerable public enthusiasm, the translation to reduced commodity pricing remains incomplete and challenges remain and need more time," said economic activist Rashid Alwaly.
"Continued progress requires systematic market regulation, comprehensive price monitoring, and enhanced institutional capacity to prevent manipulation," Alwaly added.
He concluded by stating, "Citizens maintain simultaneous feelings of encouragement and apprehension regarding the sustainability of these monetary improvements," highlighting the delicate nature of gains made in a country enduring its tenth year of conflict-driven humanitarian crisis.
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