Yemen's riyal collapses under the reign of one militia, holds firm under the reign of another

Yemen's riyal collapses under the reign of one militia, holds firm under the reign of another

By Sameer Alyemeni

Yemen's riyal is seeing fast collapse against foreign currencies in the parts of Yemen under the control of the UAE's STC militia and is keeping value unchanged under the control of Iran's Houthi militia.

The US dollar's value stood at 1000 riyals today up compared to 940 rials a week ago and 860 last April in the areas affiliate to Aden central bank controlled by the UAE's militia.

Meanwhile the same currency's exchange rate against the US dollar has stayed the same for the past months at around 597 riyals for each US dollar in the northwestern part of Yemen controlled by Iran's Houthi militia.

The split of the Yemeni currency started after the Houthi militia outlawed in January 2020 the use of the newer and smaller-size riyal bills issued by the Aden central bank.  

The areas under the Yemeni government's control, in the country's east, are financially affiliate to the central bank in the STC-held city of Aden.

Yemeni economists are warning of the consequences over the devaluation in a war-torn country where already food prices are too high over the purchase power and millions of people are a step away from famine.

"It is a catastrophic moment, one US dollar has exceeded 1000 Yemeni riyals in value," tweeted the chairman of the Studies and Economic Media Center Mustafa Nasr this Sunday afternoon.

The crisis also comes amidst constant Yemeni accusations to the international community of overlooking and even colluding with the different coup d'états and division of Yemen into cantoons ruled by different militias instead of helping the country restore the Yemeni state.

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