Yemen Monitor/Newsroom:
The Yemeni economy is witnessing a sharp deterioration in the value of the national currency, the Yemeni Rial, which has reached its lowest level ever, threatening the purchasing power of citizens and exacerbating economic and social crises.
The sharp decline in the value of the Yemeni Rial is exacerbating inflation rates and significantly increasing the prices of basic commodities, pushing more of the population below the poverty and hunger lines.
Economic expert Wafiq Saleh points out that every drop in the currency’s value pushes new groups into the clutches of hunger and famine, explaining that “every cycle of currency depreciation takes new segments of the population to the line of hunger, poverty, and famine.”
It is expected that the continuation of this deterioration will worsen the humanitarian crisis in Yemen and increase rates of poverty and hunger, with citizens lacking purchasing power.
Saleh believes that “any government measures that do not prioritize improving the value of the currency and stopping the continuous fluctuation in the exchange rate are worthless,” warning that the continuation of this situation “is not in anyone’s interest,” and that the government will be the first to be affected by the repercussions of these policies.
This situation is considered “a neglected duty and a priority that cannot be delayed,” according to Saleh.
Saleh stresses the need for the government, the Presidential Council, and the Central Bank of Yemen to take urgent measures to stop this deterioration, considering that improving the value of the currency should be at the top of their priorities.
He calls on the government to “harness all its efforts and capabilities” to restore currency stability.
He also warns of the “spread of hunger and starvation of citizens” under these continuing conditions, noting that “there is no legitimacy for any authority in light of the deteriorating economic situation.”
It is expected that the continued collapse of the Yemeni Rial will exacerbate the economic and humanitarian crisis in the country, necessitating urgent local and international interventions to contain the situation. The loss of confidence in the national currency may lead to further deterioration and increase the difficulty of restoring economic stability in Yemen.
