After Unprecedented Collapse to National Currency in Aden, Sana’a Sets a Condition for Assistance
Sana’a put forward its only condition for restoring exchange rates stability in the legitimacy-controlled areas. At a time on expectations that international community will return to banking with it, in light of its success in controlling exchange rates despite the siege and war that have continued for seven years. Exclusive-Alkhabar Alyemeni: Mohamed AlHouthi announced his readiness to restore and stop the collapse of the Yemeni riyal against the dollar within a short period, provided that the financial cycle, with its revenue, is restored through Sana’a. Al-Houthi’s tweet came on the eve of an unprecedented collapse to the exchange rates of local currency “riyal” against foreign currencies such as dollar and Saudi riyal, amid indications of further deterioration due to the large withdrawal for foreign currency from local market, belonging to Hadi’s family and his entourage, who fear the seizure of their accounts by their opponents in the Transitional Council, in addition to flood the local market with more printed banknotes outside coverage and looting resources, most notably oil revenues that go to the accounts of the National Bank of Saudi Arabia. A few days ago, the governor of the Central Bank in Sana’a presented an initiative to save the currency in the areas of legitimacy, as he demanded the disbursement of oil and gas revenues as salaries for employees in all regions in a manner that maintains the stability of the monetary cycle. The governor denied the existence of a liquidity shortage, as Hadi government trying to market its unprecedented printing banknotes, noting that the supply is still at the appropriate level. Sana’a succeeded in stabilizing the exchange rates at the barrier of 600 riyals to the dollar and 158 to the Saudi riyal, despite the war it is facing in this aspect, whether by siege and preventing the entry of foodstuffs and oil derivatives, or by trying to target its areas with the new printed currency outside coverage. In the context, the pro-legitimacy economic expert, Majid Al-Daari, expected that the international community will start opening banking channels to deal with Sana’a government in a “forced” manner, noting in a tweet on his official page on social media that the stability of exchange rates in Sana’a and their collapse in Aden may enhance the situation of those he described as Houthis” compared to “legitimacy”.