The Yemeni riyal witnessed a significant deterioration against foreign currencies prompting the Foreign Exchange Dealers Association in Aden to shut down all exchange offices.
The association issued a circular, calling on local money transfer networks, owners of exchange firms and all institutions, facilities and networks of the banking sector in Aden to suspend their exchange activities starting from Thursday.
It said the measure falls in the country's public interest which requires the closures of exchange firms.
Bankers in Aden and other areas that don't fall under the control of the Houthi militia told Asharq Al-Awsat that they expected a humanitarian crisis if the riyal continues to collapse, especially with the current hike in commodity prices.
The price of one dollar almost reached 900 riyals on Thursday in liberated areas, meanwhile it almost surpassed 600 riyals in Houthi-run areas.
According to economists, the Yemeni riyal collapsed due to the division of the banking sector between areas of the legitimate government and that under the Houthi control where the group bans the use of new edition of banknotes, in addition to tightening its grip over the banks headquarters in Sanaa.
