Economist: The scarcity of the Yemeni riyal and political factors behind the improvement in the local currency

Economist: The scarcity of the Yemeni riyal and political factors behind the improvement in the local currency


For the second day in a row, the currency exchange market witnessed a marked improvement in the local currency against the foreign exchange basket, which an economist attributed to political and economic factors.

Workers in exchange shops in several Yemeni provinces reported a decline in the price of one dollar to 580 Yemeni riyals from the value of which exceeded 600 riyals in the past days, while the price of the Saudi riyal reached 153 decreases from 160 riyals.

Economist Mustafa Nasr, head of the Center for Economic Studies and Media said "There is also an economic factor in the scarcity of the Yemeni riyal in the market, as the delivery of salaries has been suspended for several months for military personnel of the internationally recognized government,".

"One of the economic reasons is that importers of oil derivatives stopped importing after the recent government requirements, and this led to an abundance of dollars against the Yemeni riyal," he said.

"Another factor is the decline in traders' needs for foreign currency as the end of the  year approaches, as the volume of external imports declines and the central bank in Aden continues to sell the dollar to traders," he said.


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