Yemen Enforces Ban on Foreign Currency for Trade
(MENAFN) Yemen’s internationally-recognized government declared on Tuesday that all commercial transactions within its controlled territories must exclusively use the Yemeni rial, banning foreign currencies for domestic trade and services.
A local news agency reported the new directive forbids the use of foreign currencies in transactions such as tuition payments, medical fees, rent, and travel tickets—except where foreign currency is inherently necessary.
Enforcement responsibilities fall to ministers and provincial governors, who must regularly update the prime minister on implementation progress, the news agency stated.
This move aims to reinforce the rial’s authority and stabilize the currency. Currency traders in Aden told media that the rial appreciated sharply, reaching 1,617 per U.S. dollar in government-held areas on Monday—a remarkable 40 percent rebound from nearly 2,900 per dollar weeks earlier.
Yemen is grappling with an extraordinary financial crisis, having endured over two years without oil revenues, which make up 70 percent of government income. The situation worsened after Houthi attacks targeted southern oil export facilities in late 2022 amid an ongoing conflict that has raged since 2014.
The fractured Arab nation remains split between the internationally-recognized government seated in Aden and the Houthi movement controlling the capital Sanaa and northern territories.
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