News - Yemen: The exchange rates for foreign currencies have risen rapidly again in the banks of Aden and the southern and eastern Yemeni occupied governorates, signaling an imminent economic disaster.

Observers consider this decline the fastest for the local currency in days in the areas under the control of the Saudi-UAE occupation in southern and eastern Yemen, during which the dollar price increased by 51 riyals within 96 hours. This coincides with the approach of Eid al-Adha, during which people increase their purchases.

Observers indicate that this deterioration is due to currency manipulation by speculators, without ruling out the involvement of traders in this rapid collapse of the currency in an attempt to preemptively compensate for potential losses due to the chaos in currency control.

Although the Central Bank in Aden issued decisions banning dealings with several banks considered main banks in the country, and banning the circulation of Yemeni currency printed before 2016 in these areas, these measures, according to economic experts, may negatively affect the monetary situation and the overall economic condition in southern and eastern Yemen. 

The results of these decisions seem to have started appearing a few days after the Central Bank of Aden's decisions, through the rapid collapse jumps recorded by the local currency in Aden.

Recently,  the Central Bank of Yemen (CBY) warned of the ongoing escalation targeting the banking sector, driven by directives from the Saudi regime and influenced by American and British orders. An official source at the CBY informed Saba News Agency that these renewed attacks on the banking sector, especially by the Central Bank in Aden, are a response to Yemen's stance against the genocide committed by Israel against the Palestinians.

In early April, the Saudi-backed government ordered commercial banks, Islamic banks, and microfinance banks to relocate their headquarters from Sana'a to Aden within 60 days. The Central Bank in Aden warned that banks failing to comply would face legal actions under the Anti-Money Laundering and Counter-Terrorism Financing Law.

Economists believe this decision is a punitive response to the Central Bank in Sana'a issuing a new 100 riyal coin to replace damaged paper currency. They argue the Saudi-led coalition has long aimed to force the Sana'a government to either accept the new illegal currency, causing inflation and burdening citizens, or face a cash shortage.

The coalition expected the old currency in Sana'a to run out, compelling acceptance of the new currency and causing a nationwide collapse of the Yemeni riyal. However, the new coin issued by the Central Bank in Sana'a has maintained currency stability and reduced inflation risks.

The United States is seen as driving the decision to pressure Sana'a regarding Gaza, with the Saudi-backed government using it to avoid peace obligations and disrupt the roadmap.