Yemeni rial plunges to historic low, worsening humanitarian crisis

Aden: The Yemeni rial has plummeted to an all time low of approximately 2,760 per US dollar in recent trading sessions, marking the currency s steepes...

Aden:  The Yemeni rial has plummeted to an all-time low of approximately 2,760 per US dollar in recent trading sessions, marking the currency's steepest depreciation since the outbreak of civil war in 2015 and deepening the suffering of millions already grappling with what the UN calls the world's worst humanitarian crisis.

The historic currency collapse has triggered a complete halt in foreign exchange operations at money changers across government-controlled territories during the past weeks, as traders fear further deterioration in the absence of immediate intervention measures, according to local banking sources.

When Yemen's conflict erupted in early 2015, the rial traded at approximately 215 per dollar. The current exchange rate represents a staggering depreciation of nearly 1,200 percent, eroding the purchasing power of ordinary Yemenis and pushing basic necessities beyond the reach of millions.

Economic analysts have linked the rial's decline to the Yemeni government's worsening financial crisis, especially after the halt in oil export revenues since late 2022.

The halt resulted from Houthi attacks on oil infrastructure and ports, cutting off a vital source of revenue for the cash-strapped administration. The Houthis are demanding a comprehensive agreement on oil revenue sharing and the use of those funds for nationwide salary payments -- an unresolved dispute that continues to deepen the economic crisis.