The national currency collapsed again and reached unexpected levels, coinciding with the disappearance of per capita income and the rise in prices in an inverse equation, with citizens’ fears of the dire and bad consequences resulting from this collapse increasing.
With the collapse of the currency following its relative stability, the prices of food commodities returned to rise rapidly and noticeably, creating economic burdens on the lives of citizens.
The rise included all food and consumer items without exception, and daily living requirements have become an unattainable dream for many families in various governorates.
The World Bank had expected the Yemeni economy to contract this year by 0.5 percent, due to the cessation of oil exports as a result of the Houthis targeting export ports.
The bank described this as a severe shortage compared to the 1.5 percent growth rate witnessed by the country's economy during the previous year. It also revealed that Aden Port's revenues declined during the first eight months of this year by 61 percent.
The report stated that expectations indicate that Yemen's gross domestic product will contract by 0.5 percent during the year 2023, which constitutes a sharp contrast to the growth rate of 1.5 percent witnessed in the previous year.
A real dilemma
Economist Mustafa Nasr said that the collapse of the Yemeni riyal was not surprising and was expected because the data on the ground are clear and indicate that this decline occurred.
Nasr added in a statement to Al-Sahwa Net that foreign exchange sources disappeared after the cessation of oil exports, and the percentage of revenues collected from tax and customs revenues declined significantly.
He pointed out that the government faces a real dilemma with regard to sources of foreign exchange, despite the deposit amounting to one billion and two hundred million, but the Kingdom has set a set of conditions and requirements for it, and it seems that they have not been implemented, according to him
Scarcity of foreign exchange
Nasr explained that there is a great scarcity in the amount of foreign exchange available in the dollar and Saudi rial, which leads to the decline in the value of the local currency, not to mention the state of instability and the lack of signs of a political solution soon.