Yemen Monitor/Newsroom:
The Economic Studies and Media Center has issued a strong warning regarding the repercussions of printing new currency in Yemen amid an unprecedented deterioration in the value of the Yemeni Rial. The exchange rate has now exceeded 2,500 Rials to the US dollar, a stark contrast to 220 Rials before the war began in 2015.
In its statement on Wednesday, the center emphasized that the sharp decline in currency value reflects a massive monetary and economic collapse, exceeding one thousand percent, which intensifies the crises plaguing Yemenis.
The statement noted that the country faces cumulative crises, including a near-total halt to oil exports, which were a primary source of public revenue. Additionally, there is a division within economic institutions and a multiplicity of revenue streams without transparency or effective oversight. The center also pointed to a sharp decline in foreign aid allocated for the humanitarian response plan, which has received only 9% of the required funding as of May 2025. This is the lowest level in over a decade, further exacerbating humanitarian conditions.
The center discussed a severe liquidity crisis and a sharp economic contraction affecting Yemen, with areas controlled by the Houthi group experiencing isolation, and government-controlled areas facing a state of deficit and paralysis in public services. It affirmed that these challenges directly impact millions of Yemenis and worsen the conditions of hundreds of thousands of families unable to secure their basic needs.
The Economic Studies and Media Center warned that any move to circulate new currency or inject additional quantities of local cash without monetary backing represents a dangerous economic gamble. This could lead to escalating inflation, rising prices, erosion of citizens’ purchasing power, and a collapse of confidence in the banking system and national currency.
It pointed out that such a step could trigger additional protests and conflicts, threatening the remaining fragile state structures.
The center stressed that indicators of popular anger are now clear in the absence of leaders capable of confronting the crisis and the abandonment of duties by responsible Yemeni parties, which further erodes state institutions.
It called on all parties to assume their responsibilities and prioritize the interests of citizens who have taken to the streets demanding their living rights, cautioning against the continuation of disastrous financial policies that further exacerbate the crisis.
