Collapse of Currency, Printing New One, Financial Crisis Hit Aden’s Presidential Council
The Yemeni currency collapsed again in the areas controlled by the Presidential Council, which is loyal to the Saudi coalition, amid an official recognition of bankruptcy.
The Central Bank in Aden raised the price of the dollar in its last auction to 1183 riyals, according to what it announced in its official statement. This is the first time that the dollar has approached 1,200-riyal barrier, although its price in the local market actually exceeds this price. Amidst the spread of speculation and the black market.
The Central Bank raised foreign exchange rates as a natural reflection to the financial crisis, what Aden government suffers from, as a result of Sana’a stopping oil exports in its favor.
Earlier, Rashad Al-Alimi told the European Union mission in Yemen and the ambassadors of the five permanent members of the Security Council during a meeting at his residence in Riyadh that his council was suffering from a financial crisis due to the suspension of oil exports. Economists expect that the coming period will witness a serious decline in the economic situation in the presidential regions.
Majed Al-Daari says in a post on his social media that Aden government no longer has any way to enhance its financial position other than to go towards printing more banknotes. This will cast a shadow over the deteriorating local currency since the decision to move the Central Bank to Aden.
Sana’a had expressed, through more than one official, permission to resume oil exports from the official ports in the east of the country on the condition that it is agreed that its revenues will go to the employees’ salaries and services, while Aden government refuses to do so.