Yemen’s government shuts down unlicensed exchange firms to stop riyal devaluation

The Yemeni government has long accused local money traders of engaging in currency speculation. (AFP)
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Updated 04 November 2024
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Yemen’s government shuts down unlicensed exchange firms to stop riyal devaluation

  • Local money traders and media said that the riyal was trading at 2050 against the dollar
  • Yemeni government closed dozens of exchange firms in Aden, Yemen’s interim capital, Hadramout, Shabwa, and Mahra that lack or have expired licenses

AL-MUKALLA: The Yemeni riyal stabilized on Monday near its all-time low of 2050 against the dollar in government-controlled areas, as the Yemeni government launched a campaign targeting unlicensed exchange firms.

Local money traders and media said that the riyal was trading at 2050 against the dollar, maintaining the same record low, days after breaking the historic low of 2000 against the dollar. In early 2015, the Yemeni riyal was worth 215 per dollar.

This comes as the Yemeni government closed dozens of exchange firms in Aden, Yemen’s interim capital, Hadramout, Shabwa, and Mahra that lack or have expired licenses.

Local officials, escorted by armed policemen, were seen in the streets of Aden, Al-Mukalla in Hadramout, Attaq in Shabwa, and Al-Ghaydah in Mahra province, inspecting exchange firms and shops’ licenses and closing the doors of unlicensed firms to slow the devaluation of the Yemeni riyal.

The Yemeni government has long accused local money traders of engaging in currency speculation, which resulted in the Yemeni riyal’s rapid devaluation.

Another reason for the devaluation, according to the Yemeni government, is the Houthis’ attacks on oil terminals in Hadramout and Shabwa in late 2022, which resulted in a complete halt to oil exports.

Saleh Fadaeq, the head of the central bank branch in Shabwa, said on Monday that the campaign against unauthorized exchange firms would continue to stop the Yemeni riyal’s devaluation, end currency speculation, and combat money laundering, according to the official news agency SABA.

The Presidential Leadership Council and the Yemeni government have recently requested financial assistance from international donors to help stabilize the Yemeni riyal, pay employees, and fund critical projects.

Yemenis across the political and social spectrum have warned of a major humanitarian crisis in Yemen, as the rapid devaluation of the riyal has driven up the prices of food, fuel, and other essential commodities, pushing people deeper into poverty.

Ismael Al-Sharabi wrote on Facebook that the riyal’s depreciation is causing “a humanitarian crisis,” with the prices for basic food items reaching unprecedented highs. He urged the Yemeni government to quickly bring under control the riyal’s fall.

“A tomato now costs 1,000 riyals. This is a humanitarian disaster and a historical curse that has befallen these people, who are now fighting death to survive, swallowing all burdens, high prices, and extreme poverty,” Al-Sharabi said.

High prices caused by the riyal’s devaluation have sparked violent protests in Aden and Al-Mukalla, as well as other Yemeni cities under government control, over the last several years.

Mustafa Nasr, director of the Studies and Economic Media Center, said the government’s campaign against unlicensed exchange firms did not lead to the riyal’s recovery as it only targeted small firms and not the large exchange firms that control the market, calling for stricter government measures to prevent the riyal’s fall.

“The exchange sector has become disorganized, bloated, and has sufficient liquidity to influence the exchange market,” Nasr told Arab News.

In its most recent report on the Yemeni economy, released late last month, the World Bank depicted a bleak economy in 2025, saying that Yemen’s gross domestic product is expected to fall by 1 percent in 2024, compared to a 2 percent drop last year.

Sixty percent of Yemenis have insufficient access to food due to an unprecedented level of insecurity brought about by the war, and the Houthis’ attacks on oil terminals slashed 42 percent of the government’s revenues, making it difficult for it to provide public services and devaluing the Yemeni riyal, according to the World Bank.


Iran-Israel war fears spark fuel shortages in West Bank

Updated 5 sec ago
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Iran-Israel war fears spark fuel shortages in West Bank

“Fearing potential supply disruptions or further escalation, citizens across the West Bank have begun stockpiling fuel,” said Abu Al-Rob
In the northern West Bank city of Nablus, dozens of drivers waited in line for fuel

RAMALLAH, Palestinian Territories: Fears over the war between Israel and Iran have led to fuel shortages in the occupied West Bank, the Palestinian Authority told AFP Wednesday, as drivers queued in long lines to buy fuel.

“Fearing potential supply disruptions or further escalation, citizens across the West Bank have begun stockpiling fuel, putting additional pressure on an already strained market,” said Mohammad Abu Al-Rob, director of the PA’s communications center.

After decades of enmity and a prolonged shadow war, Israel on Friday launched a massive bombing campaign that prompted Iran to respond with missiles and drones.

The PA official said there has also been “a noticeable decline in the number of fuel tankers arriving from Israel, some of which have been redirected for use by the Israeli occupation army.”

In the northern West Bank city of Nablus, dozens of drivers waited in line for fuel.

Mohammad Ayoub, a resident of Nablus who had been waiting in line for two hours, said he hoped to finally purchase fuel after several failed attempts.

“I came yesterday at about 11:00 p.m. and found the gas stations closed. I also came early in the morning and the situation was the same.”

Ahmad Samaana, a truck driver from Nablus, complained of limits placed on fuel purchases.

“Large trucks, like the one I have, need about 500 liters, but when we enter the station, the worker at the station tells me that he allows filling up with a value of 500 shekels, which is less than 100 liters of diesel,” he told AFP.

“This is not enough for a truck.”

Abu Al-Rob noted that “the (fuel) supply chain remains entirely subject to Israel’s will and control,” as the country controls all entry points into the West Bank, which it has occupied since 1967.

He relayed the Ramallah-based Palestinian Authority’s call “to safeguard the flow of essential supplies — particularly fuel for hospitals, bakeries, and other critical sectors” should the situation worsen.

Israel to resume natural gas exports when military deems it’s safe, energy minister says

Updated 18 June 2025
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Israel to resume natural gas exports when military deems it’s safe, energy minister says

  • Cohen said he has been in contact with Egypt and Jordan about the cut in supplies.
  • “I don’t want to use our strategic storage, so therefore, I needed to cut exports”

TEL AVIV: Israel will resume its natural gas exports when the country’s military believes it would be safe to do so, Israel’s Energy Minister Eli Cohen said on Wednesday, as an air battle between Israel and Iran entered its sixth day.

Two of Israel’s three gas fields — Chevron-operated Leviathan and Energean’s Karish — off its Mediterranean coast that provide the bulk of exports to Egypt and Jordan, have been shut since June 13 amid the conflict between Israel and Iran.

That leaves in operation only the older Tamar field, used mainly for domestic supplies.

Cohen said he has been in contact with Egypt and Jordan about the cut in supplies.

“They can see that we are in a war. I don’t want to use our strategic storage, so therefore, I needed to cut exports,” Cohen told Reuters after a news briefing.

“I hope I will be able to use another rig as soon as possible and use it for the supply of gas (exports). For me, the most important thing is (supplying) Israel,” he said, alluding to fueling needs during the conflict with Iran.

It wasn’t clear when another gas field will be reopened, Cohen said, noting: “We are working with them [the military], the Navy, and right now their recommendation is that one (field) will continue to work and two will be shut down.”

Israeli gas accounts for about 15-20 percent of Egypt’s consumption, data from the Joint Organizations Data Initiative (JODI) shows. The disruption to Israel’s gas supply led Egyptian fertilizer producers to halt operations on Friday.

Israel launched the air war on Iran on Friday after concluding the latter was on the verge of developing a nuclear weapon. Iran maintains its nuclear program is purely for civilian purposes.

OTHER ENERGY SOURCES
Israel’s energy sector, Cohen said, was operating normally, with no shortages expected since the country also maintains reserves in coal, diesel and renewable energy.

Israel’s Oil Refineries in Haifa was hit by an Iranian missile this week, which killed three people and halted operations.

Cohen said he hoped the facility would resume operations within a month, though a second refinery in the south remains open.

Since Friday, the percentage of renewable, or solar, energy used in electricity production has more than doubled to some 40 percent, Cohen said.

There was also some damage to wastewater treatment facilities and pipelines from Iranian air strikes.

Cohen acknowledged that victory against Iran could take weeks but Israel’s energy demands could be met.

“Although the Iranians struck some of our plants, we have very strong energy facilities that can supply all the energy demands for Israeli citizens and the army, in fuel, gas, electricity and water.”


Iranian Ambassador in Tokyo hails Saudi and Arab support

Updated 18 June 2025
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Iranian Ambassador in Tokyo hails Saudi and Arab support

  • Ambassador Seadat recognized the substantial support from Crown Prince Mohammed bin Salman
  • “We will always remember the kindness shown to us by our brothers in Saudi Arabia,” he told Arab News Japan

TOKYO: Iranian Ambassador to Japan, Peiman Seadat, expressed his gratitude for the unified support of Saudi Arabia and other Arab and Muslim countries in their collective effort against the aggression of the Israeli war machine.

He stated that this unity among Arab and Muslim nations is a testament to the strength of regional cooperation.

In an exclusive interview with Arab News Japan on Wednesday, the Ambassador highlighted that Arab and Muslim countries recognize the seriousness of the aggression by the Israeli regime and the threat it poses to the entire region.

Ambassador Seadat recognized the substantial support from Crown Prince Mohammed bin Salman and Foreign Minister Prince Farhan.

“We are deeply grateful for the compassionate assistance provided by the Crown Prince to approximately 80,000 Iranian pilgrims who have been stranded in Saudi Arabia. His Highness personally assured us that these pilgrims are being welcomed as guests of the Kingdom. We will always remember the kindness shown to us by our brothers in Saudi Arabia.”

The Iranian Ambassador, Seadat, also highlighted the support to Iran by Egypt, Qatar, the United Arab Emirates, and Oman, among others. He also expressed gratitude to the Secretary-General of the Gulf Cooperation Council, for his clear condemnation of Israel’s aggressive actions against Iran.


Gaza Humanitarian Foundation initiative ‘outrageous’: UN probe chief

Updated 18 June 2025
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Gaza Humanitarian Foundation initiative ‘outrageous’: UN probe chief

  • GHF began operations on May 26 after Israel completely cut off supplies into Gaza for more than two months, sparking warnings of mass famine
  • UN and major aid groups have refused to cooperate with the foundation over concerns it was designed to cater to Israeli military objectives

GENEVA: The use of the US and Israeli-backed Gaza Humanitarian Foundation to distribute food in the Palestinian territory is “outrageous,” the head of a UN inquiry said Wednesday.
Navi Pillay, who chairs the UN’s Independent International Commission of Inquiry on Israel and the Palestinian territories, joined a growing chorus of criticism of the GHF’s operations, and cited its US links.
“In every war, the siege and starvation surely leads to death,” the former UN rights chief told journalists.
“But this initiative of what’s called a foundation, a private foundation, to supply food, is what I see as outrageous, because it involves the United States itself, the government, and it turns out, as we watch daily, that people who go to those centers are being killed as they seek food.”
An officially private effort with opaque funding, GHF began operations on May 26 after Israel completely cut off supplies into Gaza for more than two months, sparking warnings of mass famine.
The United Nations and major aid groups have refused to cooperate with the foundation over concerns it was designed to cater to Israeli military objectives.
Dozens of Palestinians have been killed while trying to reach GHF distribution points.
Pillay said the commission would “have to look into... the policy purpose and how it’s being effected.
“We have to spell out what is the motive of, right now, the killing of people who are coming for humanitarian aid from this so-called foundation — and that lives are being lost just in trying to secure food for their children.”
Unprecedented in its open-ended scope, the three-person Commission of Inquiry was established by the UN Human Rights Council in May 2021 to investigate alleged violations of international humanitarian and human rights law in Israel and the Palestinian territories.
South African former High Court judge Pillay, 83, served as a judge on the International Criminal Court and presided over the International Criminal Tribunal for Rwanda.
On Tuesday she presented the commission’s latest report to the Human Rights Council.
It said Israel had attacked Gaza’s schools, religious and cultural sites as part of a “widespread and systematic” assault on the civilian population, in which Israeli forces have committed “war crimes” and “the crime against humanity of extermination.”
Israel does not cooperate with the investigation and has long accused it of “systematic anti-Israel discrimination.”


UAE president, Russia’s Putin discuss Iran-Israel conflict

Updated 18 June 2025
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UAE president, Russia’s Putin discuss Iran-Israel conflict

  • Emirati, Russian leaders proposed ways to contain the military escalation

LONDON: Russian President Vladimir Putin held a phone call with UAE President Sheikh Mohamed bin Zayed Al-Nahyan to discuss the latest developments in the Iran-Israel conflict, which entered its sixth day as of Wednesday.

The leaders addressed the grave implications of the conflict — which began on Friday — on regional and global security, according to the Emirates News Agency.

They discussed efforts to contain the war and halt the spiraling escalation, and highlighted the importance of exercising restraint and pursuing dialogue to avoid further threats to security.

Putin and Sheikh Mohamed voiced their support for all efforts aimed at achieving a solution through diplomatic means, WAM reported.