Yemen currency clash deepens crisis in war-torn country

Yemen’s government and the Houthi rebels continue to battle a currency war that has opened up a gulf in riyal values.

Alongside a grinding seven-year military conflict, Yemen’s government and the Houthi rebels are locked in battle on another front – a currency war that has opened up a gulf in riyal values. Both the government and the Iran-backed Houthis used the same notes until late 2019 when the rebels banned new banknotes printed in government-run Aden over concerns about inflation. The resulting difference in money supply has since seen the riyal’s value plummet to about 1,000 to the dollar in government areas, while the value in Houthi-controlled zones has held relatively stable at 600.