Yemen Makes ‘Concrete Progress’ in Forming New Govt.

A general view of the interim Yemeni capital Aden in 2018. (Reuters)
A general view of the interim Yemeni capital Aden in 2018. (Reuters)
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Yemen Makes ‘Concrete Progress’ in Forming New Govt.

A general view of the interim Yemeni capital Aden in 2018. (Reuters)
A general view of the interim Yemeni capital Aden in 2018. (Reuters)

“Concrete progress” has been achieved in recent days over the formation of a new Yemen government after parties agreed on the distribution of shares, revealed Western and Yemeni sources on Sunday.

“Yemeni political parties reached an agreement concerning the division of ministerial portfolios between the North and South,” the sources said.

In recent days, Yemeni President Abdrabbuh Mansur Hadi had stressed the need to expedite the process of implementing the Riyadh Agreement, which is required to unite Yemeni parties and to confront the Iran-backed Houthi militias.

Government spokesman Rajeh Badi told Asharq Al-Awsat: “Consultations are going in the right direction towards reaching understandings between the various participating parties.”

The spokesman added that understandings are about to be reached between northern and southern Yemen on the distribution of ministerial portfolios based on the mechanism to accelerate the implementation of the Riyadh Agreement.

“All parties are keen on implementing the Agreement, and everyone is aware of the gravity of the economic and military situation in the country,” Badi said.

Signed between the legitimate government and the Southern Transitional Council in August, the mechanism to accelerate the implementation of the Riyadh Agreement calls for forming a new 24-minister government. Portfolios will be distributed equally between North and South Yemen.

Badi said, “Obstacles that some parties considered immense, were not that grave,” praising the support of Saudi Arabia to facilitate those talks.

“Our Saudi brothers are keen on removing any obstacle hindering Yemeni stability and they support easing the suffering of the Yemeni people at the hands of the Houthis,” he said.

Yemeni media had in recent hours published leaks related to the distribution of shares in the new government. However, no official sources confirmed those reports.

Meanwhile, British Ambassador to Yemen Michael Aron told Asharq Al-Awsat that all signs indicate that a breakthrough is about to be reached in the formation of a new cabinet.

He said that “good news” may be on the way.



Yemeni Rial Regains a Third of Its Value Amid Government Push to Curb Soaring Prices

Bundles of banknotes issued by the Yemeni government at the Central Bank headquarters in Aden. (Reuters)
Bundles of banknotes issued by the Yemeni government at the Central Bank headquarters in Aden. (Reuters)
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Yemeni Rial Regains a Third of Its Value Amid Government Push to Curb Soaring Prices

Bundles of banknotes issued by the Yemeni government at the Central Bank headquarters in Aden. (Reuters)
Bundles of banknotes issued by the Yemeni government at the Central Bank headquarters in Aden. (Reuters)

The Yemeni rial has regained nearly 30 percent of its value in government-controlled areas over the past few days. The recovery comes amid intensified efforts by both central and local authorities to stabilize commodity prices in line with the currency’s rebound against foreign currencies.

Banking sources in the interim capital, Aden, confirmed that the exchange rate of the US dollar dropped on Saturday to around 1,800 rials, down from nearly 2,900 rials in recent weeks. The sharp appreciation has sparked cautious optimism among citizens, many of whom have endured relentless price hikes on basic goods in recent months.

The rial’s rapid recovery is largely attributed to direct interventions by the Central Bank of Yemen, most notably its decision to revoke the licenses of 24 exchange companies accused of currency manipulation.

The bank also introduced a set of regulatory measures aimed at tightening oversight of the financial sector in coordination with commercial banks and money transfer agencies.

In response to the developments, Yemeni Prime Minister Salem bin Braik instructed the Ministry of Industry and Trade to deploy joint field inspection teams.

The teams will conduct comprehensive campaigns to monitor and enforce fair pricing for essential foodstuffs, aiming to ease the financial burden on citizens and ensure prices reflect the improved exchange rate.

“The government is bound to protect citizens’ interests while also safeguarding the private sector and encouraging investment,” the Prime Minister stated.

Any improvement in the currency’s value must be mirrored by corresponding reductions in the prices of imported basic commodities, particularly those brought in by major traders using foreign currency, he added.

Minister of Industry and Trade Mohammed Al-Ashwal echoed the call for broad governmental cooperation, urging local authorities, judiciary bodies, and security forces to support the inspection committees in their mission.

He revealed that an urgent directive had been issued to all provincial offices of the ministry to intensify market inspections and enforce compliance with adjusted pricing.

Al-Ashwal warned that violators could face the revocation of their business licenses and inclusion in a national blacklist if found guilty of price manipulation or ignoring official directives. He called on suppliers and merchants to adhere to what he termed “fair prices” in order to protect the national economy and avoid punitive action.

The latest reforms are part of a broader economic recovery plan endorsed by the Presidential Leadership Council, he said. This plan includes boosting financial and administrative oversight, regulating imports, and stabilizing the exchange market in partnership with the Central Bank and licensed exchange firms.