- The salary crisis has been exacerbated by the closure of all doors in front of initiatives calling for the neutralization of the economy and the stand of the Central Bank (CBY) in the war on Yemen. Revenues must be deposited to the Salary Account in Hodeidah Central Bank and allocated to civil servants’ salaries. In fact, the salaries of public sector employees have not yet been paid since the CBY transfer from the Capital Sana’a to Aden Governorate in August 2016
- The Yemeni governorates under the Saudi-Emirati occupation witnessed protests, popular sit-ins and calls for a strike and civil disobedience due to the salary crisis. This is mainly due to the mismanagement of state resources and the continuation of the war against services and the purchase of loyalties, on which billions of riyals are spent to create chaos leading to the collapse of the country. Meanwhile, the leaders of the War Coalition mercenaries looted more than 85% of Yemen’s revenues from gas and crude oil, ports, taxes and customs, which go to their own accounts abroad under the auspices and facilitation of the US-led War Coalition.
- The crisis resulting from the collapse of exchange rates in Yemen has cast its shadow on various levels in the country, especially the living conditions and the inflation of prices of goods, services and foodstuffs, which has pushed more families into poverty, hunger and the inability to buy food. To add insult to injury, the so-called Hadi government in Aden has doubled customs duties, in addition to the closure of Sana’a International Airport, and the blockade imposed on the port of Hodeidah, the only port of entry for most Yemenis.
- During the month of August, foreign exchange rates recorded a rapid rise against the Yemeni riyal in the southern Yemeni regions occupied by Saudi Arabia and the UAE. The US dollar rate has crossed the boundary of 1050 Yemeni riyals, and the Saudi riyal rose to above the level of 275 Yemeni riyals. On the contrary, the Yemeni Riyal maintained a state of stability in the area ruled by the National Salvation Government in Sana’a, as the dollar rate has not exceeded the limits of 600 YR against the US dollar.
- With every progress on the way to settle the humanitarian situation in Yemen, efforts to end the war on Yemen falter, as the War Coalition countries are arming themselves with the economic aspect and extensively use it in order to make an advantage at the negotiating table. Instigated by the War Coalition, the mercenaries took decisions to print billions of riyals outside banking policy, raised customs duties on all imports by 100%, and took other measures that have exhausted the Yemeni people and aggravated the humanitarian catastrophe.
- In addition to the accelerating decline in the value of the Yemeni riyal, Hadi Government has raised Aden customs fees and doubled the US dollar rate in customs transactions from 250 YR to 500 YR per dollar. This absurd and ill-considered decision is part of a systematic method and arbitrary measures followed by Hadi government in the context of its economic war, targeting all the people of Yemen, and resulting in a shortage of food, pharmaceutical and consumer goods in the Yemeni market. This has further exacerbated the situation by increasing the rate of poverty and unemployment.
- The National Salvation Government in Sana’a has called on the War Coalition countries to lift the blockade imposed on Hodeidah ports and remove the arbitrary restrictions on the entry of more than 400 basic items.
- The Ministry of Transport in Sana’a has announced that Hodeidah port is ready to receive ships, commercial containers, goods and foodstuffs, provide facilities to traders, reduce 49% of customs duties and fix customs exchange rate at 250 YR.
- The World Bank confirmed that more than 70% of the Yemeni population is at risk of famine due to food insecurity and the war that has been going on for more than 6 years. The war has devastated the economy and reduced GDP by half since 2015, putting 80% of the population below the poverty line, and resulting in rising food prices, shortage in supplies, and a devaluation of the riyal.
- The Supreme Economic Committee in Sana’a has called for implementing the UN recommendations regarding lifting the restrictions imposed on Hodeidah ports and Sana’a International Airport and forcing the War Coalition to stop using the economy as a means of pressure. The Committee added that it is ready to work with the United Nations to neutralize the economic aspect and pay salaries of public sector employees.
- During the month of August, Yemen Petroleum Company (YPC) in Sana’a reported that the War Coalition detained a new ship, “Harvict,” carrying 29,727 tons of diesel, and preventing it from docking at Hodeidah port. By this, the number of seized ships reaches 5 ships. Consequently, this led to the suspension of all the filling stations of the oil company in Sana’a, a rise in the prices of oil derivatives, the suspension of basic services and transportation, and the expansion of the oil derivatives black market.
