New Collapse of Currency After Central Bank Raised Price of Dollar
The local currency returned on Tuesday, to its collapse in Aden with the decision of Central Bank to raise exchange rates, in a move that may carry political dimensions in terms of timing related to the conflict between the parties to power in the city.
Banking sources reported that dollar exchange rates during the past hours exceeded the barrier of 1200 riyals, while the Saudi riyal exceeded 300 riyals.
This rise came hours after the Central Bank in Aden announced the results of the latest auction for the sale of foreign currency; he explained in a statement that the auction value amounted to more than 1,120 riyals. This is the first rise since the bank adopted the auction system to cover the local market from foreign currency months ago, and the bank’s prices remained below the 990 riyals barrier to the dollar.
The bank did not explain the reasons for raising foreign currency rates
but its timing indicates that it is the result of disputes between the bank and the de-facto authority in the city, which follows STC.
In a statement, the bank held STC responsible for the deterioration of living situation and the currency, this was in response to a series of accusations to the bank’s leadership of running a conspiracy to return the bank to Sana’a, before it became clear that it resulted from disputes due to the Central Bank’s refusal to grant STC a license to establish a new bank to absorb the proceeds of Aden.