الأربعاء، 1 أغسطس 2018

Who is Behind Collapse of Yemeni Riyal



Waddah Ben Atia

Southern Writer

Those who observe stages of the collapse of Yemeni Riyal will find out that it is a systematic work according to plans of legitimacy powers. Before transferring the Central Bank of Yemen from the control of Al-Houthi to the control of legitimacy, Yemeni Riyal decreased from 57 to 65 in exchange with Saudi Riyal. Yemeni Riyal remained on the level of 60 to 65 for two years. The militias spent all the hard currency reserve on what they called “military effort”.
When the legitimacy decided to transfer the Central Bank of Yemen from Sanaa to Aden, Saudi Riyal prices doubled while Yemeni Riyal dropped to 50% to reach 140 Yemeni Riyals in exchange of Saudi Riyal.
The question is: Why did Yemeni Riyal drop after the transfer of Central Bank? The main cause was printing billions of Riyals in Russia without hard currency coverage. It is also noticeable that with every return of a legitimacy leader to Aden, the currency drops while large sums of money are payed for officials and followers without monitoring.
Such acts increase prices of hard currency in the market as officials and their relatives and followers take money from the bank and head too black market to buy hard currency.
In addition to the war, drop of exports, mutiny of Al-Houthis and Muslim Brotherhood and their refusal to transfer taxes from Mareb and Sanaa to Aden, the main cause of currency collapse is undoubtedly corruption of the legitimacy.

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