The Yemeni Rial in Freefall

The Yemeni rial has lost more of its value against foreign currencies as a result of that conflict between the legitimate government and STC. (AFP)
The Yemeni rial has lost more of its value against foreign currencies as a result of that conflict between the legitimate government and STC. (AFP)
TT
20

The Yemeni Rial in Freefall

The Yemeni rial has lost more of its value against foreign currencies as a result of that conflict between the legitimate government and STC. (AFP)
The Yemeni rial has lost more of its value against foreign currencies as a result of that conflict between the legitimate government and STC. (AFP)

With the conflict between the Yemeni government and the Southern Transitional Council (STC) affecting Yemen’s economy, currency exchange shops either closed their doors or abstained from selling hard currencies.

The Yemeni rial has lost more of its value against foreign currencies as a result of that conflict.

Bankers in the interim capital, Aden, confirmed that the exchange rate of the rial has dropped to 800 against the dollar. This makes up the most significant depreciation in the local currency since the nationwide coup in 2014.

A new crisis had erupted after the STC seized cash containers belonging to the Central Bank of Yemen (CBY), leaving public servants concerned for their monthly salaries and worsening the already deteriorating living conditions in Yemen.

STC armed men had taken over seven cash containers, hauling around 80 billion rials from Aden seaports to CBY headquarters in Aden.

With the drop in the currency exchange rate, the CBY issued a circular advising money exchangers across Yemen not to allow for agent accounts to exceed insurance ceilings.

CBY also warned against dealing with unlicensed money exchangers and called for maintaining fair competition among them.

While the bank threatened to take legal measures against violators, observers fear that the continued decline of the currency will lead to a sharp rise in the prices of necessary commodities and a decrease in the purchasing power of the population.

This comes especially in light of the parallel intransigence by the Iran-backed Houthi militias that have prevented the circulation of the new edition of banknotes in areas under their control.

The legitimate Yemeni government, in a statement, blasted the STC over the seizure of the money convoy, denouncing the move as barbaric.

It also accused the STC of continuing to refuse to implement the Riyadh Agreement, deliberately obstructing it.

Last November, Riyadh sponsored an agreement between the government and STC following an armed conflict in southern Yemen.

According to the deal, a new Aden-based government would be formed, all military units would be tied to the defense and interior ministries and the two parties would exchange prisoners.

Another agreement was signed in April between the government and STC to implement the Riyadh Agreement.

Yemen's southern provinces have witnessed repeated clashes between government forces and STC fighters since the latter declared self-rule in Aden in late April.



As Sudan's Army Retakes Ground, Some Displaced Residents Return to Ravaged Capital

Plumes of smoke rise during clashes between the Rapid Support Forces and the army in Khartoum, Sudan, September 26, 2024. REUTERS/Stringer/File Photo
Plumes of smoke rise during clashes between the Rapid Support Forces and the army in Khartoum, Sudan, September 26, 2024. REUTERS/Stringer/File Photo
TT
20

As Sudan's Army Retakes Ground, Some Displaced Residents Return to Ravaged Capital

Plumes of smoke rise during clashes between the Rapid Support Forces and the army in Khartoum, Sudan, September 26, 2024. REUTERS/Stringer/File Photo
Plumes of smoke rise during clashes between the Rapid Support Forces and the army in Khartoum, Sudan, September 26, 2024. REUTERS/Stringer/File Photo

The morning sun cast long shadows as Abdulilah Mohamed, an elderly resident of the Shambat neighborhood in the Sudanese capital Khartoum, returned to his family home after fleeing from civil war.

The streets, now strewn with debris and remnants of conflict, led him to a structure barely standing after two years of fighting between the Sudanese army and the Rapid Support Forces.

"They left nothing behind, they took everything and destroyed everything," he lamented, referring to the RSF as he stood amid the broken walls of his house and the fragments of his family's belongings.

"I came here specifically to assess the situation and see the life, so that my family doesn't come and get confused about what to do. I came first, and then I can evaluate the situation for them here," he added.

Mohamed is one of millions who once lived in the greater capital area, which includes the cities of Khartoum, Omdurman, and Bahri, and were forced to flee when war broke out in April 2023 amidst a power struggle between the army and the RSF ahead of a transition to civilian rule.

Entire neighborhoods in Khartoum were flattened, though some parts of Omdurman managed to retain access to utilities, Reuters reported.

Now, as the army pushes back RSF fighters and regains ground in the capital, a cautious trickle of residents is making the journey home.

Huda Ibrahim, who fled to Port Sudan - more than 800 km (500 miles) from the capital—said the longing to return had never faded.

"We were forced to stay away," she said, while on a bus en route to Khartoum.

Mohamed Ali, the driver, noted a shift in mood.

"You can sense that their sense of security has grown,” he told Reuters.

But for many, the road home is lined with uncertainty. This conflict has devastated the nation, claiming countless lives and displacing millions.

"Their war now is not a war against the government, it's a war against the citizens and destruction," Mohamed says.

The return of more residents hinges on the government's ability to rebuild.

Rayan Khaled, a young woman who returned from Egypt, highlights the lack of services and electricity as major obstacles.

"I believe that if the government could provide electricity to the people [...] everyone would return to their homes," she said.