On Thursday, October 24, 2024, UN Special Envoy to Yemen Hans Grundberg announced that he is actively engaged in discussions with officials from the Central Bank in both Sanaa and Aden to find technical and sustainable solutions to prevent a deeper economic collapse. This includes assessing optimal monetary supply and unifying exchange rates across the country.

In statements published by Asharq Al-Awsat, Grundberg revealed that he had held discussions in Sanaa earlier this month regarding the necessity of a unified currency and banking sector to enhance financial strength and stimulate the economy.

He highlighted that over 70% of Yemenis are currently living in poverty, with women disproportionately affected. Grundberg emphasized that unifying the banking sector and currency is essential for ensuring the payment of public sector salaries, which is vital for millions of Yemenis.

Since the onset of the banking crisis in April, his office has been collaborating with the Central Banks in Sanaa and Aden to discuss sustainable solutions to avoid further economic deterioration. This includes evaluating the optimal monetary supply, ensuring exchange rate stability, and sustainably financing government spending.

Grundberg reiterated the importance of keeping these economic issues free from political interference, stating, “A unified currency and banking sector will bring financial strength, economic stimulation, and increased purchasing power for Yemenis.”

His remarks come as the Yemeni government grapples with a sharp decline in the national currency amid deteriorating economic and living conditions following nearly a decade of turmoil since the Houthi takeover of Sanaa.

On the same day, reports indicated that the Yemeni rial had reached record lows against foreign currencies, with the dollar being purchased at 2,027 rials and sold at 2,041 rials, while the Saudi riyal was buying at 531 rials and selling at 533 rials, according to banking sources.