Yemen Monitor / Newsroom:
Yemeni journalist and economic expert Waqeef Saleh has warned of the repercussions of the Yemeni government’s decision to raise the price of the customs dollar, considering it a direct threat to the national economy under current circumstances. He stated that this step will double the living burdens faced by citizens within the country.
In a post on his Facebook page, Waqeef said that the government has failed to provide comprehensive economic solutions or real structural reforms at a time when the national currency is experiencing a continuous decline in its purchasing power, with escalating spending imbalances and an increase in government burdens in foreign currency.
He believes that adjusting the customs dollar while the Yemeni rial is at its lowest levels, and with the dollar approaching the YR 2900 barrier, will contribute to the erosion of wages and salaries and make it difficult to control the prices of basic goods. He pointed out that this policy will increase inflation and weaken the country’s commercial and economic environment.
Waqeef affirmed that the government continues to ignore available solutions to address the financial deficit, despite many options being available. These include re-exporting oil and operating Aden refineries at full capacity to reduce the import bill and achieve some balance in the exchange market.
He added that the halt of oil exports and the diversion of ships to Hudaidah ports since April 2022 have deprived the government of its most important sources of foreign currency. Meanwhile, it has not capitalized on the opportunity to enhance shipping and commercial activity in the ports of Aden and Mukalla, but has instead persisted with policies that deepen the state of recession.
Waqeef stressed that the government’s disregard for enormous foreign currency expenditures and its failure to enact austerity policies or spending cuts proportionate to available resources perpetuate chaos and randomness, undermining any possibility of a genuine solution to the economic crisis.
He concluded by saying that citizens will not be able to bear the cost of these policies, given the government’s lack of serious will for reform and its preference for easy options that negatively impact people’s livelihoods and market stability.
