The Yemeni riyal in the internationally recognized government regions continued to collapse in front of foreign currencies, following the Houthi speculation and the absence of monetary policies.

The Yemeni riyal settled, on Tuesday, at a new price, which is the lowest in history, as its price in the evening transactions in the unofficial exchange market has been welcomed at 2320 for sale to one dollar. 

Traders and dealers of exchange companies in the legal areas said that the US dollar recorded 2300 Yemeni riyals for purchase and 2320 riyals for sale.

The price of the one Saudi riyal, which is the most widely traded in the exchange market at 605 riyals for purchase and 610 riyals for sale, according to the same sources.

Houthi behind the collapse

Yemeni experts accused the Houthi militia, standing behind the collapse of the Yemeni riyal in the regions of the Yemeni government, due to its fierce speculation in foreign currencies.

Professor of Economics and Political Science at the University of Aden, Dr. Sami Noman, said that "exchange rates in the liberated areas have become known that they are not subject to economic standards, but to speculation by currency traders and the two ravages, especially those loyal to the Houthis."

Noman explained in a special statement to Al -Ain News, that “most of the changes in the exchange rate are made in the evening outside the official working hours. Perhaps the greatest evidence for this is that the central bank’s auctions in Aden are much lower than the supply, although they offer lower prices in the market.”

The economic expert emphasized that there is no doubt that the Houthi militia "has an interest in causing turmoil and collapses in the exchange market in the areas of legitimacy control to prove the inability of the Yemeni government to control the economy."

Also, “the largest monetary mass is present in the areas of Houthi control due to the presence of the largest population bloc and the presence of a higher percentage of merchants in the Houthi -controlled areas and the largest demand for goods and import there.”

Noman concluded that "the monetary bloc in the dollar is present with the Houthi militia more, in addition to the fact that the volume of transfers for expatriates is more in the areas of the Iranian -backed group controlled."

He also concluded that "Houthi militias have accumulated experiences in the banking field after they possess a lot of exchange companies in a hidden way, which made them more able to control the exchange market."

The absence of monetary policy

For his part, Yemeni economic expert Majid Al -Daari said that the absence of monetary policy made the central bank in Aden unable to maintain the value of the remaining local currency. ”

He emphasized that the Central Bank of Yemen has become unable to "achieve any level of banking stability for the market or take any measures towards unlicensed exchange companies and threaten them with penalties.

He added that “exchange companies are the real controller of manipulation of the exchange market.

He explained that "the closure of the central bank in Aden exchange companies is not a solution to the stability of exchange, but rather a procedure that would reduce the Houthi speculation in the currency and delay the rapid collapse of exchange as a result of the collapse of economic conditions and the absence of resources, control and accountability."