More economic deterioration looms over the areas under the control of Saudi-UAE coalition in Yemen, and the current indications confirm that the situation is on the way to a comprehensive collapse in light of international warnings of famine and the Saudi persistent in exacerbating the condition of local currency.
The inflaming prices pushed the citizens to the streets in massive demonstrations condemning the deterioration of the exchange rate and the repercussions it caused in foodstuff sector and others.
The dollar according to the latest economic reports, reached more than 800 riyals, and the Saudi riyal exceeded the threshold of 210 riyals.
These developments have produced a state of living instability and currency speculation, amid fears of a high food bill for the simple citizen who stripped from the basics of life, specifically with salary cut off for years, and hundreds of activists prompted to participate in a campaign launched on social media to denounce the absence of treatments by the coalition and Hadi government, as It was also the cause of ringing the alarm by UN from upcoming famine in Yemen, whether by statements of the Secretary-General of the United Nations, Antonio Guterres, or by the statement of the International Red Cross.
Many activists circulate internal accusations about the reasons that have reached the situation at such a frightening slope, and this is a natural reflection for the state of division that the coalition has strengthened within Yemeni society since the very beginning of the war on Yemen, in the context of its endeavors to singularity there are those who delve into the history of the crisis, the Yemeni riyal, even before Saudi Arabia launched its war on Yemen in March of 2015, was in its best condition, and even during the days of war, and with the stay of the Central Bank in Sana’a, the exchange remained stable despite the blockade and the war and its repercussions on the economic situation in light of the systematic targeting for his facility, but this situation did not like the coalition, which hastened to move to the Central Bank to Aden to encourage Hadi government, eager to loot public money, to print billions of riyals outside the framework of monetary coverage at that time, the forces of the riyal began to slowly erode from 215 riyals to the dollar about 700 riyals, while the printing work continues.
These moves were in parallel with pushing the lords of corruption in the “legitimacy” by coalition to drain the oil and gas wealth in the eastern of Yemen to accounts in the National Bank of Saudi Arabia and encouraging the division between the authorities at the level of provinces under it, so Marib remained the nest of Islah party corrupt, while the transitional was seizing the revenues of Aden and the areas under its control.
These behaviors may seem random and chaotic, but they were, in fact, systematic and under the supervision of the Saudi ambassador, who was also seizing oil revenues, land, and seaports under the control of the coalition.
This situation brought the local currency to its lowest levels, so Saudi Arabia rushed at that time to intervene through the Saudi deposit, which wanted to be the gallows to Yemeni national currency, and this measure does not target Sana’a or those whom the coalition describes as “Houthis” who realized the danger and rushed to take measures that succeeded until the moment, to stop the continuous deterioration of the local currency and at acceptable levels despite the scarcity of resources.
Saudi Arabia is using today the economy card against its followers before others… It refused to extend the Saudi deposit for another year, which heralds a possible rise of dollar to the threshold of a thousand riyals, according to economic reports and expert expectations, this places its followers, whether in STC or Islah party, in front of a new reality that may enter them into a confrontation with the starving people.
Saudi Arabia has targets and agendas since the beginning of the war on Yemen, contrary to what it claims about restoring legitimacy or targeting a specific party, Saudi movements confirm that their goal is all Yemenis, whether they were followers or resistance fighters, and it stipulated on Hadi and STC, who are besieged by famine, to implement Riyadh Agreement that subjects the regions of southern and eastern Yemen to the new mandate, or facing the inevitable fate, but these parties have not responsibility ethics and do not care, they will not take any action, at least moving the oil and gas areas, as long as this situation keeps the revenues in the pockets of their leaders.