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.
