Foreign Exchange Trading Stopped due to New Collapse in Aden
Exchange companies in Aden stopped on Tuesday, buying and selling foreign currencies, in conjunction with a new collapse of local currency, following the decision of Aden government to raise the exchange rates of the dollar.
Banking sources reported that exchange companies have completely stopped selling foreign currencies. Considering the decision as an indication to an expected rise in their prices.
The decision to stop currency trading during the past hours’ dealings came hours after Aden government’s decision to raise foreign exchange rates in its new auction for this week.
The exchange rate of the dollar, according to an official bulletin of the Central Bank, reached 1257 riyals to the dollar, while on the black market; it approached the barrier of 1300 riyals to the dollar.
Raising the new foreign exchange within a strategy of the Presidential Council, which recently formed a humanitarian cell to face a major collapse of the local currency. It aims to gradually raise it in light of the experts’ expectations that the dollar will reach 2000 riyals.
Aden government fears a popular reaction in light of the tension and the deteriorated living situation, especially with the bankruptcy of its central bank from foreign exchange reserves.