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Yemeni Rial Continues to Recover amid Hard Currency Manipulation Threats

Money exchangers count stacks of Yemeni rials in the Central Bank of Yemen in Sanaa. (Reuters)
Money exchangers count stacks of Yemeni rials in the Central Bank of Yemen in Sanaa. (Reuters)
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Yemeni Rial Continues to Recover amid Hard Currency Manipulation Threats

Money exchangers count stacks of Yemeni rials in the Central Bank of Yemen in Sanaa. (Reuters)
Money exchangers count stacks of Yemeni rials in the Central Bank of Yemen in Sanaa. (Reuters)

Despite an ailing economy and a bloody coup, Yemen’s national currency saw a shimmer of hope for recovery with exchange rates registering their best improvement yet this month trading at YER590 per US dollar.

But hopes were soon battered by doubts that better rates are a mere consequence of Houthi currency manipulators.

The dollar exchange rate maintained a YER590-600 range, depending on region and whether they were run by Houthi militants or by legitimate government forces, currency exchangers in Aden told Asharq Al-Awsat.

The Iran-backed Houthis are known for driving down national currency rates by operating a robust black market. Currency analysts believe the militias are hoarding hard currency for later arms purchases.

Yemeni economist Mustafa Nasser said Houthi behavior threatens to deter all efforts invested in the national currency’s recovery. In a Facebook post, Nasser urged the government and Central Bank to take all measures needed to protect the best interests of Yemeni citizens.

This significant improvement, following a painful crash that saw the rial trading at YER800 to the dollar, was prompted by a series of economic commitments by the government and ongoing Saudi support, insider sources at currency exchange shops in both coup-run Sanaa and government-controlled Aden told Asharq Al-Awsat.

Saudi Arabia is among the most generous donors to Yemen’s humanitarian relief effort.

Last spring, alongside the UAE, it pledged $1 billion in aid to Yemen. In January, it deposited $2 billion in its Central Bank to prop up the rial.

Apart from committing to a $60 million monthly oil derivatives grant, the Kingdom also provided a $200 million cash infusion to the Central Bank to shore up its reserves after the war-torn country's currency went into freefall in September.

In contrast, locals said that progress registered in currency markets did not trickle down to commodity prices.

“Commodity prices cannot be lowered overnight,”Mohammed H., an Aden-based retail trader, told Asharq Al-Awsat, while explaining that they depend on break-even figures decided by purchase rates of deals struck by traders.

“I have a stock bought at a high price I need to sell before buying at lower prices,” he complained.

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Arab World

Israel Deliberately Targets Medical Teams, Aid Workers in Lebanon

Volunteers from the Lebanese Red Cross rescue a woman in the city of Nabatieh in South Lebanon (AFP)
Volunteers from the Lebanese Red Cross rescue a woman in the city of Nabatieh in South Lebanon (AFP)
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Israel Deliberately Targets Medical Teams, Aid Workers in Lebanon

Volunteers from the Lebanese Red Cross rescue a woman in the city of Nabatieh in South Lebanon (AFP)
Volunteers from the Lebanese Red Cross rescue a woman in the city of Nabatieh in South Lebanon (AFP)

Over the past three weeks, Israel has systematically targeted hospitals, medical staff, aid workers, and ambulances across various regions of Lebanon, particularly in the heavily bombarded southern areas.
Tel Aviv appears intent on erasing signs of life and sustainability, especially south of the Litani River, aiming to turn the region into scorched earth and establish a buffer zone by force. The exact size of this zone, who will control it, and whether it will involve a permanent occupation remain unclear.
Lebanese Health Minister Firas Al-Abiad recently stated that Israel is “deliberately and systematically” targeting medical teams, revealing that 13 hospitals are no longer operational, more than 150 healthcare workers have been killed, and over 100 medical centers and 130 ambulances have been targeted.
Last week, Nicolas von Arx, the regional director for the Near and Middle East at the International Committee of the Red Cross, issued an urgent call to protect healthcare personnel, ambulances, hospitals, and primary care centers, expressing deep concern over the attacks on medical facilities.
The Islamic Health Authority, affiliated with Hezbollah, reported that over 80 rescue workers have been killed in the past year, 70 of them in the past three weeks alone. The Scout Association of Amal Movement reported losing 21 members. Meanwhile, the Israeli army recently announced that any vehicle suspected of carrying armed militants would be considered a legitimate military target, regardless of its type.
Sobhiya Najjar, a public policy expert and coordinator of the Social Protection for All campaign at the Center for Social Science Research Applications (CESSRA), highlighted that the destruction of Lebanon’s healthcare system is systematic and mirrors what is happening in Gaza. She noted that Lebanon’s healthcare system, particularly in regions like Baalbek-Hermel, Bint Jbeil, and Tyre, was already fragile.
Najjar told Asharq Al-Awsat that Israel targets medical centers, staff, ambulances, and firefighting services to weaken Hezbollah’s ability to treat the wounded and provide essential healthcare, thus increasing pressure on the health system.
This strategy sows chaos and fear among civilians, weakening morale and hindering the delivery of humanitarian aid, including medical and food supplies. She stressed that such actions violate international laws, which protect medical teams as neutral entities.
Paul Morcos, head of the legal organization Justicia, added that while Israel claims medical facilities and ambulances are used to hide weapons and militants, indiscriminate attacks that endanger doctors, nurses, patients, and civilians are prohibited under international law. He cited the 1949 Geneva Conventions and their protocols, which mandate taking precautions to avoid harm to civilians and ensure proportionality in military operations. These rules, he emphasized, have become customary and are binding on all nations.
For her part, political activist Dr. Mona Fayyad described these actions as part of a “genocide” committed by Israel, deliberately preventing the rescue of the wounded. She criticized the international community’s silence and argued that even if some medical personnel support Hezbollah, there is no justification for risking civilian lives under any pretext.