Yemen Monitor / Newsroom:
The Houthi group has intensified its crackdown on foreign currency remittances, adding further burdens on citizens—especially expatriates and their families—at a time when the local currency has recorded an unprecedented collapse in areas controlled by the internationally recognized government, with the U.S. dollar exceeding 2,500 Yemeni rials.
Banking sources in Sana’a confirmed that the Houthis have issued strict directives to exchange companies and money transfer outlets prohibiting the disbursement or sending of remittances from abroad in foreign currencies, particularly in U.S. dollars, unless a “conversion fee” of up to 1,000 rials per $100 is paid. If the recipient refuses, the remittance is paid out in Yemeni rials at a rate lower than the market exchange rate.
Citizens described the situation as a “blatant exploitation of expatriates and their families,” labeling these practices as “outright theft” that force people into a lose-lose situation—either pay illegal fees or receive their money in local currency at unfavorable rates.
Some money exchangers in Sana’a defended the move, citing a liquidity crisis and the official exchange rate imposed by the Houthi authorities at 530 rials to the dollar, compared to over 2,500 rials in government-held areas. They claim the decision aims to “regulate the market” and curb currency speculation.
This comes amid a prolonged and complex banking crisis in Yemen, exacerbated by the financial and monetary split between the Houthi authorities in Sana’a and the government in Aden. The division has led to sharp discrepancies in exchange rates and created a parallel market for foreign currency trading, especially in cities and areas along the frontlines.
Economic experts warn that this divide in monetary policies and the growing demand for foreign currencies further deepen the depreciation of the local currency, which has become a casualty of political and economic conflict in a country suffering from a decade-long war and fragmentation.
