Barran Press
The Yemeni rial plummeted to a historic low against foreign currencies today, exacerbating the country's ongoing economic crisis. Banking sources in Aden, the interim capital, reported that the US dollar reached a record high of 2,306 rials.The Saudi riyal also fluctuated sharply, trading at 603 Yemeni rials.
The rial's collapse comes despite substantial recent financial support from Saudi Arabia. On December 27, 2024, the Kingdom announced a $500 million aid package to Yemen, comprising a $300 million deposit to the Central Bank of Yemen and a $200 million installment to address the government's budget deficit. This followed a larger pledge of $1.2 billion in economic support announced in August 2023, which was disbursed in installments throughout 2023 and 2024.
The Yemeni government is grappling with a severe cash crisis as the local currency's value continues to plummet in government-controlled territories. Experts attribute the decline to a combination of factors, including the halt of oil exports.