Yemen: For years, the damaged currency has been a major problem for Yemeni citizens due to Sana'a's inability to print new currency to replace the damaged notes.

This is because such a step would have catastrophic effects on the economy and the local currency prices. 

Sana'a has maintained stability through careful monetary policies, preventing the collapse of the local currency in areas under its control. 

One of these measures was the decision made by Sana'a at the end of 2019 to prohibit the circulation of currency printed by the pro-aggression government in an illegal manner, alongside tightening control over currency exchange and speculation, as seen in occupied areas. 

This policy has kept the Yemeni rial stable against foreign currencies for the past three years, with its value not exceeding 600 rials against the US dollar and 160 rials against the Saudi riyal, and even decreasing in recent months to 529 rials against the dollar and 140 rials against the Saudi riyal.

The Failure of the US-Saudi Aggression 

While Sana'a has maintained stability of the local currency in recent years, it is now taking the first steps to address the issue of damaged currency, a challenge the aggression had hoped would lead Sana'a into a deadlock. 

The aggression anticipated that Sana'a would be forced to accept the circulation of illegal currency printed by the pro-aggression government after the destruction of the financial reserves in its controlled areas. However, as usual, Sana'a surprised everyone by deciding to issue new metal currency notes worth 100 rials to replace the damaged paper currency of the same denomination.

Certainly, Sana'a wouldn't have taken this step if it hadn't been thoroughly studied to ensure it wouldn't affect the exchange rate of the local currency, as affirmed by the Central Bank in Sana'a when it stated that this currency would not impact exchange rates.

Indeed, exchange rates remained stable with the introduction of the new metal currency notes in areas under Sana'a's control. Exchange rates in these areas stood at 529 rials per US dollar and 140 rials per Saudi riyal. This success adds to Sana'a's achievements in its economic battle against the coalition.

Contrary to what the aggression is trying to propagate regarding Sana'a's recent move, economic experts confirm Sana'a's statement that there will be no repercussions on the banking sector due to the issuance of this new currency, as it's merely replacing damaged notes.

With Sana'a's success and the confirmation from economic experts, the pro-aggression government is experiencing confusion, as evidenced by a statement from the Central Bank of Aden, which announced its rejection of the introduction of these metal currency notes and banned dealing with them in southern occupied governorates.

Whether the pro-aggression government accepts it or not, it won't be able to overshadow Sana'a's successes in managing the economic file adeptly, unlike the pro-aggression government. It erroneous monetary policies leading to the collapse of the local currency and an economic catastrophe that still lingers today, especially evident in the significant collapse of the local currency in its controlled areas, where the exchange rate against the US dollar is 1670 rials and 439 rials against the Saudi riyal.

Statements from officials in Sana'a indicate that Sana'a is moving forward with comprehensive solutions to the issue of damaged currency. This was confirmed by Mohammed Abdulsalam, head of the National Delegation, who stated on his "X"  account that this step is the beginning of a comprehensive solution.

Hashem Ismail, the governor of the Central Bank in Sana'a, also affirmed during his press conference that there are surprises to be revealed by Sana'a in the coming months, indicating Sana'a's determination to solve the problem of damaged currency with careful steps to preserve the stability of the Yemeni rial against foreign currencies, especially amidst the uncertainty surrounding the possibility of reaching a near peace agreement between Sana'a and the US-Saudi aggression.