Withdrawing Oil, Gas Account to UAE Reinforces Collapse of Yemen Currency

The escalating collapse on Sunday in the currency sector in “legitimacy” areas threw money transfers inside Yemen, as it reached an unprecedented level since the beginning of the crisis, amid indications of a possible rise.

The exchange rates of the local currency “riyal” in Hadi government areas jumped in the past hours to more than 1220 riyals per dollar, which reinforced fears of a possible collapse.

The new rise in exchange rates came on the eve of the announcement by Governor of the Central Bank in Aden, Ahmed Al-Mabaqi, that an agreement had been signed to open an account for the Central Bank in Abu Dhabi Islamic Bank.

Government sources reported that the new account will be an alternative to the account that the bank opened at the National Bank of Saudi Arabia some time ago to supply oil and gas revenues, it is a smart Emirati move through which it is trying to conclude deals with Hadi government to confront the repercussions of the American-Western movement to acquire oil and gas in eastern Yemen, to cover the needs of the European market for gas, with the expectation of imposing sanctions on Russian energy.

Hadi government, which formed a new administration for the Central Bank in Aden, was supposed to carry out reforms such as transferring oil and gas account to the bank in Aden, which would contribute to the stability of currency, but its transfer to Abu Dhabi portends a significant deterioration during the coming period.

Source link