Breaking News: Cash Shortage Hits Yemen Amid Currency Reform
Mukalla, Yemen – The Yemeni government’s recent efforts to stabilize the Yemeni riyal have resulted in a severe cash shortage. The Central Bank, located in Aden, has closed unauthorized exchange firms and centralized remittances to control currency speculation. These changes have led to the riyal’s value improving from 2,900 to 1,500 per US dollar.
Despite this progress, citizens in government-controlled cities like Aden and Taiz are struggling to access cash. Local banks and exchange firms are limiting currency exchanges, often allowing only small amounts, which has paralyzed businesses. Mohammed Omer, a grocery store owner in Mukalla, reported having to close his shop due to the inability to convert foreign currency.
Government employees are also facing challenges as salaries are paid in low-denomination notes, making transactions difficult. Many traders refuse to accept these notes, further complicating the situation.
Some Yemenis have started using workarounds, relying on personal connections to access cash or exchanging currency at unfavorable rates. In rural areas, the situation is even worse, with limited access to exchange services.
The Central Bank has acknowledged the cash shortage and is exploring measures to alleviate the crisis.
