Houthi militia suffocates the Yemeni currency

January 31, 2020

A recent World Bank report warned of the repercussions of the Houthi militia banning the circulation of the national currency on the economy in Yemen.

The report “The most recent economic developments in Yemen”, issued by the World Bank on January 28, said that the militia measures in Sana’a, with regard to the local currency, had caused devastating effects on the Yemeni economy at all levels.

It also indicated that the withdrawal of the Houthi militia from the new version of banknotes issued by the Central Bank in Aden had caused a payment crisis, which had exacerbated the humanitarian situation.

The report pointed out that this measure reflected the most negative impact on individuals and small companies. It stressed that the Houthi war on the new currency will further fragment the Yemeni economy, pointing out that the liquidity crisis is in fact linked to the basic indicators of the macroeconomy and the inconsistent financial monetary policies in the country.

In addition, the report stressed that the repercussions that have emerged recently due to the arbitrary actions of the Houthi militia against the circulation of new categories of the Yemeni currency, such as differences in exchange rates, worsening inflation and lack of liquidity, are major steps in the path of destroying the Yemeni economy.

Since last December, the revolutionaries imposed a new ban on dealing with the new categories of the national currency in their areas of control, and they launched a massive campaign of shops and merchants looting, which aggravated the humanitarian situation and pushed towards a new increase in prices and a record variation in exchange rates and commissions of internal transfers.

Read more related articles about Yemen: https://www.yemenwatch.com/category/uncategorized/

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