Bottomless collapse... eroding wages and burning prices exacerbate the crisis of the liberated areasEnglish - Thursday 25 May 2023 الساعة 04:58 pm
Currency rates witnessed a rapid rise a few days ago against the collapse of the currency, the Yemeni riyal, without any significant reasons, accompanied by a rise in the prices of foodstuffs, consumer goods, and vegetables.
The Yemeni riyal recorded 345 against the Saudi purchase, and 348 for sale, while it recorded 1318 against the dollar for sale, 1306 for purchase.
It has become a constant complaint, by citizens in the liberated governorates, as most people are unable to provide for their families' food needs, which exacerbated their crises and family problems.
The general public interpreted the reasons for the continued decline in the value of the currency as a sign of the government's weakness and incompetence and the inflation of the number of exchange houses, which became the main controller of the currency's rise overnight without any reasons, but only after supply and demand of fictitious currency among themselves.
Economic observers explained the reason for the recent rapid rise due to the delay in announcing peace conditions in Yemen, the slowdown in the political process, the Houthi militia's repeated refusal, and its main financier, Iran, and its obstruction of peace efforts.
Another reason for the rise in exchange rates is the coincidence of the Hajj season for the purpose of exchanging currencies for pilgrims, and the coincidence of the blessed Eid al-Adha season, when merchants bring various goods in foreign currency, which makes money changers take advantage of these seasons to raise the currency rate to raise their personal gains, amid the silence of the government.
Despite the recent deposit and what preceded it, the situation did not improve due to the controlled corridors of corruption and the weakness of the Aden central authority in taking over the situation despite imposing sanctions on a number of money changers, which did not result in a decline in the collapse of the riyal.
effects of a currency crash
Increasing prices directly affects people and societies in general, and has negative social effects, the most important of which are: increased poverty, deterioration of health conditions with difficulty in accessing health services, and an impact on the social pattern as this leads to a change in consumer habits and reliance on cheaper products. , which affects the quality of life and the social level of individuals.
The collapse of the Yemeni currency left a new, more tragic situation in the lives of Yemenis after their wages and savings eroded, and the prices of goods, foodstuffs, and services rose to record levels that pushed more Yemenis to live below the poverty line.
The Famine Early Warning Network (FEWS) issued warnings that the continuation of the conflict in Yemen, as at least one out of every five families will face large gaps in food consumption accompanied by acute malnutrition that is high or higher than normal, or that it will be barely able to eat enough food. Meet minimum nutritional needs.