Aden: Central Bank Expects New Collapse of Local Currency
The Central Bank in Aden on Monday revealed negative repercussions facing the local currency in the areas controlled by the Saudi-led coalition in southern Yemen, in reference to a new expected collapse of the currency.
According to YPA, the bank indicated its decision to stop what it described as “inflationary financing” for the pro-coalition government to confront these repercussions, stressing the need to take measures to confront the expected collapse wave.
The local currency had lost much of its value in recent days, with the decision of the Aden Central Bank to raise foreign exchange rates within its weekly auctions to more than 1,250 riyals per dollar.
The warnings of the Aden bank came a day after President of the Riyadh-formed “Presidential Council” Rashad Al-Alimi’s statements upon his arrival in Aden, in which he promised to improve conditions in the areas controlled by his government that is experiencing an unprecedented collapse.
Economists expect the local currency to exceed the barrier of 2,000 riyals to the dollar in the southern provinces under the control of the coalition.