The Yemeni riyal is declining to its lowest historical level
English - Monday 07 September 2020 الساعة 03:30 pm
Aden, NewsYemen, Exclusive:
The Yemeni riyal continues to slide rapidly, and its price against the dollar, in transactions on Saturday, August 5, reached its lowest historical level, recording 808 riyals in Aden, 804 riyals in Hadhramaut, and 605 riyals in Sanaa.
Economists confirm that the decline in the value of the riyal is alarming, and the absence of additional financial support for Yemen increases the risks of continuous price increases.
They added that the difference in monetary policies between the Yemeni government and the Houthi militia undermined the stability of the currency.
It was attributed that the reasons for the decline in the price of the riyal to the decrease in the remittances of Yemeni expatriates to Yemen, the continuing faltering of the riyal agreement, the exchange rate difference between Sanaa and Aden by 31%, and suppliers buying dollars from the market.
In addition to cutting off the closure and reopening of exchange facilities, the partial and macroeconomic effects of the Coronavirus, and the scarcity of dollar availability in the local market.
Continuing downward pressures on the riyal ignite price inflation, reduce food security and reduce the purchasing power of individuals, and increase the cost of delivering electricity, water and sanitation services that depend heavily on imported fuel.
