ADEN, Yemen, Feb. 3 (Xinhua) — According to money changers in Aden, the Yemeni riyal has hit a new low on Saturday, reaching 1,650 against the U.S. dollar. This marks a significant increase from just a few months ago, when the riyal was at 1,500 per dollar. The current rate is perilously close to the all-time low of 1,700 per U.S. dollar in 2022.
Despite efforts from the government to stabilize the currency, the rapid decline of the riyal underscores the severe state of Yemen’s economy in the midst of the ongoing civil war. The internationally recognized government based in Aden recently formed a committee to address the currency deterioration.
The devaluation of the riyal has resulted in skyrocketing prices for essential goods such as rice, wheat, and fuel, further worsening the difficulties faced by Yemeni citizens.
Analysts are warning that without the riyal showing any signs of recovery, economic conditions will continue to deteriorate. This places urgent pressure on authorities and international mediators to take decisive steps to prevent Yemen from experiencing complete economic collapse.
The civil war in Yemen began in late 2014 when the Houthi group launched attacks on northern cities, eventually prompting the internationally recognized Yemeni government to relocate from the capital, Sanaa.
