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The National Team For Foreign Outreach - Yemen

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bank yemen

ECONOMIC SITUATION – April 2021

  1. The deterioration of the economic situation has severely exacerbated the humanitarian situation due to the continuation of the countries of War Coalition against Yemen, led by the US, KSA and UAE, targeting the economic infrastructure, imposing arbitrary restrictions, and taking other measures that led to the deterioration of the economic situation. The most notable of these measures is the lack of seriousness in the part of War Coalition countries and their mercenaries to pay the salaries of public service employees, which have been suspended since the transfer of CBY administration from the Capital, Sana’a, to Aden governorate in September 2016. This has resulted in the collapse of many families, and kept Yemen suffering from an unprecedented severe humanitarian disaster ever witnessed in history.
  2. The so-called legitimate government in the southern provinces, backed by the countries of War Coalition against Yemen, failed to manage state resources and to compact the widely spread corruption; meanwhile, it adopted an illegal economic policy by printing new banknotes without a legal cover. In addition, the influence of armed groups supported by the countries of War Coalition is growing, as they share revenues among themselves. Consequently, the living conditions have been worsened, services have been deteriorated, and the exchange rate in those governorates has increased, which led to the devaluation of the national currency.
  3. The Yemeni Confederation of Labor Unions (YCLU) calls on the so-called legitimate government, supported by the countries of War Coalition, to address and solve the issue of disbursing public sector employees’ salaries, especially in the governorates run by the National Salvation Government in Sana’a. It also calls for moving wages in proportion to the requirements of living in accordance with Stockholm Agreement, as well as settling the problems of retirees, addressing the conditions of displaced workers, and disbursing their salaries.
  4. The value of Yemeni Riyal against the US dollar keeps on deteriorating in the southern region of Yemen, controlled by the KSA-UAE occupation, where the exchange rate has reached almost 900 YR for the US dollar. This was soon reflected on the prices of foodstuff. On the contrary, the Yemeni Riyal maintained a state of stability in the areas controlled by the National Salvation Government in Sana’a, as the dollar rate there have not exceeded the limits of 600 riyals against the US dollar.
  5. The fuel supply situation in Yemen in general and the areas under the control of the National Salvation Government in particular is still suffering from a severe shortage of oil supplies, as the War Coalition countries continue to detain oil derivatives ships. Consequently, many oil derivatives ships had to return back to their places of departure without unloading their cargo at the port of Hodeidah, despite obtaining pass permits from the United Nations Verification and Inspection Mechanism (UNVIM). This has resulted in the rise of prices and the collapse of the basic service sectors.
  6. The War Coalition countries, led by the US, KSA and UAE, continue to detain more than 5 ships loaded with oil derivatives, despite completing all the procedures of inspection through the United Nations Verification and Inspection Mechanism in Djibouti (UNVIM) and obtaining UN pass permits to dock at the port of Hodeidah. Some of these ships have been detained for several months and others for more than one year and a half. However, the countries of the war coalition deliberately keep on detaining and preventing them from entering the port of Hodeidah.

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