Legitimacy Houthi stick to drop the currency in the liberated areas
English - Monday 27 September 2021 الساعة 09:59 am
Aden, NewsYemen, special:
The living conditions of citizens in the liberated governorates are heading towards a confirmed crushing famine in light of the acceleration of the collapse of the Yemeni riyal against foreign currencies, which is mainly caused by the legitimate government and the Central Bank in Aden.
Legitimacy plunges the citizen into starvation
The legitimate government is considered primarily responsible for the aggravation of the collapse of the currency and the economy, and the first and last beneficiary of the accelerating collapses that make it silent towards this humanitarian catastrophe, when it printed the local currency and pumped it to the market in large quantities of different categories, including the category of 1000 riyals and 500 riyals "without cover." ", which was completely pumped into the liberated governorates after the Houthi militia refused to deal with it, which led to a crazy rise in exchange rates, and all this to keep pace with the legitimacy of its great inability to pay the wages of state employees and the operating expenses of state institutions, which contributed to further economic deterioration.
Among the reasons for the Brotherhood’s inability to pay employees’ salaries is the insistence of the Corruption Party, the local branch of the Brotherhood, which controls the resources of the governorates of Shabwa, Marib and Hadramawt, which are under its authority from supplying the sums of oil and gas sales and the governorates’ resources to the Central Bank in Aden, causing a huge financial deficit. .
In the same context, the money changers are also behind this deterioration by speculating between the supply and demand of foreign currencies in the market in an illusory way, which leads to an accelerating rise in a close time to exaggerate the numbers, as the exchange companies are the only controllers of the currency after the weakness of the liquidity-free Aden centers.
exchange rate liberalization
The central bank participates in the exchange shops with the collapse of the currency, as it is the one who liberalized the exchange rate of the dollar three years ago, and put the dollar under supply and demand according to market needs, and this is normal, and the bank today does not control the Yemeni riyal, so the whole error is due to the central bank and monetary policy And even the legitimacy itself.
The fictitious exchange stability in the Houthi areas
In contrast, in the northern governorates under the control of the terrorist Houthi militias, which are said to be stable at exchange rates, they face great difficulty and scarcity in providing foreign currency and the Yemeni riyal from the old edition, which made the exchange rates fictitiously fixed. In contrast, Sana’a traders buy currencies through The banks, which in turn provide them from the capital, Aden, in double amounts, which makes the price of foodstuffs and other items close to the prices of the liberated governorates, which puts citizens under a greater burden in light of the unavailability of salaries that have been cut off for 7 years under the rule of these militias.
Among the evidence of the weak presence of foreign currency in the governorates under the Houthi authority, the Houthis and the Sana’a Central Bank prevented transfers in Saudi Arabia and dollars from Sana’a to Aden and allowed the opposite, to receive the infusion of currency through remittances from Aden to Sana’a.
The demand for foreign currency
Analysts had said earlier, that among the reasons that created this deterioration in the value of the riyal was also the increase in travel trips abroad, especially patients in the absence of health care services, which constitutes an additional burden on the national economy as a result of the high demand for foreign exchange purchases. This leads to a high demand for foreign currencies, with a turbulent exchange market creating chaos.
Urgent solutions to avoid the collapse
- The return of the government to assume its duties and to confront the crises that it abandoned will contribute to the stability of exchange rates.
- Stopping the network of transfers between Sanaa and Aden.
Cancellation of the old riyal.
- Supplying the resources of all the liberated governorates to the two centers of Aden.
- Strict control by the bank on currency manipulating exchange companies.
in currency.
- The Central Bank of Yemen carried out its duties more by preventing currency circulation outside its walls.
Adjusting the exchange market according to the instructions of the Central Bank on pricing.
- The Yemeni market needs large quantities of foreign exchange (dollars) and pumped them into the local market, to stop speculation by a segment of traders who exploit the local scarcity.
In the world's worst humanitarian crisis, according to the United Nations, for the past seven years, Yemen's population of about 30 million has been dependent on humanitarian aid to survive.
