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)
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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.



Kurdish Fighters Leave Northern City in Syria as Part of Deal with Central Government

A first contingent of Syrian Democratic Forces (SDF) fighters leave Aleppo, headed for SDF-controlled northeastern Syria, in Aleppo, Syria, 04 April 2025. (EPA)
A first contingent of Syrian Democratic Forces (SDF) fighters leave Aleppo, headed for SDF-controlled northeastern Syria, in Aleppo, Syria, 04 April 2025. (EPA)
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Kurdish Fighters Leave Northern City in Syria as Part of Deal with Central Government

A first contingent of Syrian Democratic Forces (SDF) fighters leave Aleppo, headed for SDF-controlled northeastern Syria, in Aleppo, Syria, 04 April 2025. (EPA)
A first contingent of Syrian Democratic Forces (SDF) fighters leave Aleppo, headed for SDF-controlled northeastern Syria, in Aleppo, Syria, 04 April 2025. (EPA)

Scores of US-backed Kurdish fighters left two neighborhoods in Syria’s northern city of Aleppo Friday as part of a deal with the central government in Damascus, which is expanding its authority in the country.

The fighters left the predominantly Kurdish northern neighborhoods of Sheikh Maksoud and Achrafieh, which had been under the control of Kurdish fighters in Aleppo over the past decade.

The deal is a boost to an agreement reached last month between Syria’s interim government and the Kurdish-led authority that controls the country’s northeast. The deal could eventually lead to the merger of the main US-backed force in Syria into the Syrian army.

The withdrawal of fighters from the US-backed and Kurdish-led Syrian Democratic Forces (SDF) came a day after dozens of prisoners from both sides were freed in Aleppo, Syria’s largest city.

Syria’s state news agency, SANA, reported that government forces were deployed along the road that SDF fighters will use to move between Aleppo and areas east of the Euphrates River, where the Kurdish-led force controls nearly a quarter of Syria.

Sheikh Maksoud and Achrafieh had been under SDF control since 2015 and remained so even when forces of ousted President Bashar al-Assad captured Aleppo in late 2016. The two neighborhoods remained under SDF control when forces loyal to current interim President Ahmed al-Sharaa captured the city in November, and days later captured the capital, Damascus, removing Assad from power.

After being marginalized for decades under the rule of the Assad family rule, the deal signed last month promises Syria’s Kurds “constitutional rights,” including using and teaching their language, which were banned for decades.

Hundreds of thousands of Kurds, who were displaced during Syria’s nearly 14-year civil war, will return to their homes. Thousands of Kurds living in Syria who have been deprived of nationality for decades under Assad will be given the right of citizenship, according to the agreement.

Kurds made up 10% of the country’s prewar population of 23 million. Kurdish leaders say they don’t want full autonomy with their own government and parliament. They want decentralization and room to run their day-to day-affairs.