Financial chaos in “legitimate” areas

exchange companies closed… Remittances downsized

Exchange companies in the provinces under Saudi-Emirati coalition control, in south and east of Yemen, closed, on Tuesday its doors in light of the rapid decline to the local currency and the confusion of Hadi’s centers in their confrontations, amid pressures for a new print.

Local sources in Aden, Marib, Hadramout, Shabwah and Taiz said that process of transferring money inside and outside Yemen has stopped permanently, along with preventing the exchange of foreign currency.

This step came in protest against currency exchange collapse, as the dollar exchange rate in the “legitimate” areas dropped from the 900-riyal barrier, amid fears of further deterioration.

The Central Bank in Aden over the past few days, issued successive decisions that failed to manage the currency compared to Sana’a, where the exchange rate there did not exceed 600 riyals to the dollar.

Among the measures announced by Hadi Bank is to stop dealing with exchange companies and settle other accounts, in addition to limiting individual transfers to a maximum of $ 800 or 2,500 Saudi riyals. He also directed to stop foreign exchange for citizens.

These directives are strict, as the bank says, they did not reflect on the daily life of the citizens who are suffering from the fiery prices in addition to exacerbating the situation, by disrupting exchange companies and pushing Sana’a centers to take similar measures.

On the same level, the New Arab site quoted from sources in Hadi government saying that UAE is pressuring Hadi government to print a new currency instead of printing one similar to the old currency in a smaller size.

This step would eliminate any future attempts to promote the Yemeni currency in future.