The currency exchange markets in the capital, Aden, this evening witnessed a sudden collapse against the Yemeni riyal, hours after the spread of leaks about the Presidential Leadership Council making governmental changes, including the portfolio of the Prime Minister.

According to Scoop24 ​​website follow-ups, the exchange and purchase rates of foreign currencies decreased significantly, while their selling prices did not witness any significant change.

Economists attribute this collapse to the optimism of market participants about the possibility of improving the economic situation with the formation of a new government, as they expect the new government to present economic plans and reforms that contribute to the stability of the national currency.

While some see an opportunity for speculators to play with the market price and withdraw foreign currencies from citizens.

A large gap between the buying and selling price:

Field observations showed that the gap between the buying price of currencies and their selling price had widened significantly, as the price difference between them in some cases reached more than 17 riyals.

For example, the exchange rate of the Saudi riyal this morning was 433 riyals to buy and 436 riyals to sell, while it decreased this evening to 415 riyals to buy and 432 riyals to sell.

This widening gap is due to the desire of money changers to take advantage of the state of optimism prevailing in the market, as they seek to buy currencies from people at low prices and sell them to them at high prices.

Fears of continued currency fluctuation:

Despite this collapse, economic experts warn that currency fluctuation may continue in the absence of radical solutions to the economic problems facing Yemen.

They call for the necessity of taking urgent steps to reform the financial and monetary sector, and to enhance confidence in the Yemeni riyal, in order to achieve permanent stability in currency prices.