The Central Bank in Aden on Monday revealed negative repercussions facing the local currency in the areas controlled by the Saudi-led coalition in southern Yemen, in reference to a new expected collapse of the currency.
During its meeting, Monday, to address this problem the bank indicated its decision to stop what it described as “inflationary financing,” stressing the need to take measures to confront the expected collapse wave.
The local currency lost much of its value in recent days, with the decision of the Aden Central Bank to raise foreign exchange rates within its weekly auctions to more than 1,250 riyals per dollar.
The warnings of the Aden bank came a day after the President of the Riyadh-formed “Presidential Council” Rashad Al-Alimi’s statements upon his arrival in Aden, in which he promised to improve conditions in the areas controlled by his government that are experiencing an unprecedented collapse.
In the southern provinces under the control of the coalition, economists expect the local currency to exceed the barrier of 2,000 riyals to the dollar.
