Yemen shuts exchange firms in Aden as currency collapses 

The Foreign Exchange Dealers Association in the interim Yemeni capital of Aden announced on Wednesday the closing of all exchange firms, following the significant deterioration of the local currency.

The Yemeni riyal recorded a historic collapse against the US dollar, as the price of one dollar during the past two days reached 880 riyals, for the first time since the start of the war in the country.

The association issued a circular, calling on local money transfer networks, owners of exchange firms and all institutions, facilities and networks of the banking sector in Aden to suspend their exchange activities starting from Thursday.

The association stated that the country’s public interest requires the closures of exchange firms following: “The significant deterioration of the local currency against foreign currencies, reaching a record low.”

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This is not the first time that the Foreign Exchange Dealers Association announces the suspension of exchange activities in Aden due to the collapse of the local currency, in light of the government’s failure to solve the dilemma that affects the lives of most Yemenis.

Last Tuesday, the United Nations World Food Programme (WFP) indicated that the Yemeni riyal had lost 250 per cent of its value since the start of the war.

Yemen has been undergoing a violent war resulting in one of the worst humanitarian crises worldwide, leading millions to the brink of starvation. Eighty per cent of the Yemeni population are in need of aid, according to UN estimates.