Yemen Monitor / Aden / Special:
The Yemeni rial continues its historic collapse, surpassing 2,500 rials per U.S. dollar in some unofficial exchange markets. This deepens the suffering of citizens amid a lack of fundamental solutions to the worsening economic crisis.
Amid escalating uncertainty, the Central Bank of Yemen announced that it was only able to sell half of the U.S. dollars offered in its latest auction—just $15 million out of a total $30 million—at a rate of 2,409 rials per dollar.
The auction results showed weak demand for foreign currency, with only 53% of the offered amount being covered. This reflects severe liquidity shortages and declining confidence in the local market.
Meanwhile, economic reports have highlighted the dire risks facing Yemen’s economy. The Center for Economic Studies and Media pointed out that the depreciation of the national currency and the collapse of the banking sector are occurring within a context of political conflict and international sanctions, which are further complicating the situation.
The report explained that the devaluation of the rial, restrictive measures imposed on the private sector, and the Houthi group’s control over several commercial institutions have all worsened the living crisis for citizens—who are already suffering under a war that has lasted for over a decade.
Yemen is facing unprecedented challenges, including the fragmentation of its banking system and a steep decline in economic activity. These issues threaten an even greater collapse in the purchasing power of the local currency, amid warnings of what could become the worst humanitarian consequences in the country’s history.
