A historic collapse hits the value of the Yemeni riyal’s exchange rate against foreign currencies in an unprecedented manner, reaching 2,145 Yemeni riyals per dollar.

The decline in the exchange rate comes in light of the economic collapse that the country is witnessing as a result of the Houthi militia war 10 years ago.

The decline in the exchange rate of the Yemeni riyal against foreign currencies led to an increase in the prices of food and consumer goods, which exacerbated the deficit in the purchasing power of citizens.

The militias continue to create a new economic war against the Yemenis and the banking sector, since their coup against the Yemeni state, and their targeting of Yemeni oil export ports in the east of the country.

High exchange rate

Banking sources told Al Ain News that yesterday's trading recorded a significant rise in the exchange rates of the local currency against foreign currencies, most notably the US dollar and the Saudi riyal.

The sources added that the exchange rate of the US dollar against the Yemeni riyal at the opening of today, Tuesday, reached 2145 Yemeni riyals for sale, and 2133 riyals for purchase, per dollar.

While the exchange rate of the Saudi riyal, which is the most widely traded in Yemeni markets, reached 563 Yemeni riyals for sale, and 561 riyals for purchase.

The collapse that the price of the Yemeni riyal has reached has never been witnessed before, amid warnings from economists of the worsening living situation in the country, which is suffering from the worst humanitarian crisis in the world, according to the United Nations.

In late last December, the Kingdom of Saudi Arabia announced a new deposit to the Yemeni government of half a billion dollars to save the local currency from collapse and pay salaries.

Support was allocated in the amount of $300 million as a deposit to the Central Bank of Yemen, and $200 million as a fourth installment to support addressing the budget deficit of the Yemeni government.

Despite the emergency support, the currency continued to collapse over the past days, amid warnings from economists of the continuation of the unprecedented collapse and the further deterioration of the living conditions of citizens.

The Governor of the Central Bank of Yemen confirmed last October that Yemen had lost more than $6 billion of its own resources during the past 30 months alone, due to the Houthi economic war.

Despite the government's moves to confront the economic crisis that struck the country and caused the collapse of the value of the national currency and an unprecedented rise in inflation, these moves did not achieve stability in the exchange rate or create any effects or calm the banking market