Cash shortages grip Yemen despite currency stabilisation

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📰 Middle East

Cash shortages grip Yemen despite currency stabilisation 8h ago

Aljazeera

Yemen is experiencing a severe cash shortage despite the government's successful efforts to stabilize the Yemeni riyal against the US dollar. The Central Bank in Aden implemented measures including shutting down unauthorized exchange firms and centralizing remittances, which reduced the riyal's devaluation from approximately 2,900 to 1,500 per US dollar. However, this has led to widespread public frustration as cash in Yemeni riyals has become scarce, with banks and exchange firms limiting conversions of foreign currency or refusing them altogether. This liquidity crunch paralyzes businesses, creates a black market for currency exchange, and leaves many unable to access savings or make essential transactions, even affecting payments for healthcare and forcing government employees to carry wages in large bundles of low-denomination notes.

Aljazeera Full Article

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