Yemeni rial Plummets to Record Low
(MENAFN) The Yemeni rial has plunged to a record low of around 2,760 against the U.S. dollar in recent trading, marking its most severe collapse since the civil war began in 2015. This dramatic decline has worsened the plight of millions already enduring what the UN describes as the most severe humanitarian catastrophe globally.
In response to the currency’s unprecedented fall, foreign exchange operations across money exchange offices in government-held areas have come to a complete standstill in recent weeks. Local banking insiders say traders have halted transactions amid fears the situation will spiral further without urgent policy intervention.
Back in early 2015, as the conflict ignited, the rial stood at about 215 per dollar. The current rate reflects a catastrophic 1,200% devaluation—decimating the buying power of ordinary Yemenis and making essential goods unattainable for large portions of the population.
Economists attribute the currency's collapse to the government's escalating fiscal troubles, intensified by the cessation of oil export revenues since late 2022.
That suspension came after Houthi-led attacks targeted key oil facilities and shipping ports, cutting off a crucial income stream for the already resource-strapped administration. The Houthis insist on a comprehensive accord covering oil revenue distribution and the allocation of those funds toward nationwide salary payments—an ongoing stalemate that continues to cripple the economy.
The rial’s nosedive has ignited public outrage. Earlier this month, protests erupted in Aden, the southern port city, where demonstrators demanded swift government action to stabilize the currency and overhaul failing public services.
Hussein Ali, a day laborer in Aden, is among the millions directly affected by the economic turmoil.
Ali, who supports a family of six, typically earns about 15,000 Yemeni rials (roughly $7) per day from temporary jobs in construction, farming, or carpentry. “In the past, a worker's salary of 4,000 rials could meet all his family's needs. Today, a daily wage barely covers the cost of one kilogram of rice,” he said.
“Every passing day brings greater hardship.” Ali lamented. “When the rial collapses, our entire lives collapse with it.”
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