Only a few months ago, the Yemeni riyal exchange rate improved against foreign currencies, after it had reached record levels of collapse and the start of the recovery journey following the appointment of a leadership to the Central Bank and the formation of the Presidential Council.
With this improvement, a state of cautious optimism prevailed, but it rose again, for the dollar to cross the barrier of 1100 riyals, while the Saudi riyal came very close to the barrier of 300 Yemeni riyals.
With this new collapse in the value of the Yemeni currency, questions arise about the reasons that led to this sudden collapse, which in turn exacerbated the suffering of the citizens and caused a rise in the prices of food commodities.
Journalist and economic expert, Mr. Muhammad Al-Jamaa’i, said that the demand for currency in Yemen is not the only influence in controlling its prices and indicators.
Al-Jamai added in an exclusive statement to Al-Sahwa Net: that the central bank’s control over the money market has weakened after its failure in Sana’a, the transfer of its operations to Aden, and its abandonment of its obligations due to compulsory conditions, foremost of which is war and scarcity of resources, and the financial center in Sana’a controls economic pressure papers and uses them in His declared war against any government success in Aden, as well as his use of it to fund his wars and militias.
Al-Jamai stressed that since then, the exchange houses through exchange companies and black markets for currency are the ones who control the rise and decline of currencies against the national currency and the main factor in this field.
He explained that by virtue of the knowledge and experience of exchange houses through exchange companies and black markets in the seasons of demand for currency and seasons of decline, they leak news about deposits or funds, pointing out that this corrupt sector in the market operates without taking into account the actual needs of citizens and their countless crises.
Al-Jami pointed out that naming the owners of this sector that controls the currency market and the hidden hands that work with or through it has become a necessary and urgent matter, and it has become the duty of the moment, not because it earns from the sweat of the destitute and rides with the Houthi coup against one horse and one, and they use one sword to strike the state project and efforts to restore it.
Al-Jamai explained that the exchange scams through exchange companies and black markets also strike many of the solid economic sectors in the country, which will inevitably be affected when they find that their profits are not equal to a tenth of the profits of those profiting from the fluctuation and collapse of the sovereignty of the national currency.
lack of solutions
For his part, economic journalist Majed Al-Daeri said that the absence of solutions and the failure to absorb the Saudi grant is one of the main reasons that led to the collapse of the local currency again against the foreign currency.
Al-Da’ari added in an exclusive statement to “Al-Sahwa Net” that one of the reasons for this sudden collapse is the continuation of the Central Bank’s inability to control the management of the banking sector and end speculation.
Al-Da’ari pointed out that the increasing withdrawals of foreign currency from the market, whether to finance the import of oil derivatives or imports of food and medicine, had a prominent role in the recent collapse of the Yemeni riyal.
At the end of his statements to Al-Sahwa Net, Al-Da’ari explained that the pilgrims’ desire to buy the Saudi riyal is also one of the reasons that led to the collapse of the Yemeni riyal.