Amid UN Warnings of Famine, YR Continues to Collapse in Southern Yemen
Saudi Arabia deepened on Sunday the economic crisis in the areas under its control south and east of the country, as part of the economic war, through which it is trying to bring the opposed forces in Yemen to her knees, after its failure to achieve a military victory, amid UN warnings from the repercussions of coalition’s new steps on the country, which has been economically exhausted by the war for seven years ago.
In Aden, the exchange market recorded a new collapse to the local currency, as it crossed the barrier of 1050 riyals to the dollar, amid indications of further trading rise in the coming days, especially since the new rise coincided with the announcement of the Central Bank in Aden to start pumping only a quantity of old and recently printed banknotes to the markets.
The recently printed quantity is estimated at hundreds of billions, which means that exchange rates have risen to record numbers exceeding 1,500 riyals to the dollar, according to what observers see this is a step that may cast a shadow over the already high prices of commodities and foodstuffs.
pumping more banknotes printed abroad is part of a new strategy for coalition-backed Hadi government aims to subdue its opponents in the north, south, east and west, especially as it comes in parallel with its decision to raise the customs tariff prices to double in Aden port .
These steps would also strike the remaining economic resistance in the country, especially since it coincides with Saudi Arabia’s recent decision to end the contract with Yemeni workers in the southern sectors, where experts expect to deport 23,000 workers. It is a preliminary outcome to which hundreds of thousands of Yemenis working in Saudi Arabia for decades may be added, and Saudi Arabia is preparing lists to expel them from health, education and other sectors. It is another face to the economic war it has been waging on Yemen since the start of the war, during which the country’s entire infrastructure destroyed including important sectors such as industrial, agricultural and fisheries.
This step is somewhat similar to the second Gulf crisis when Saudi Arabia decided to expel Yemenis, and seized their property prompted international parties to denounce it, where United Nations warned in a report to World Food Program and FAO, the fall of Yemen into a famine, among four countries in Arab world exposed to war by international and regional parties, most notably Lebanon, Syria and Somalia.