- More than 1.5 million public sector employees have been living in the Yemeni Capital, Sana’a, and the areas under the control of the National Salvation Government, without salaries since September 2016, after the so-called Hadi government in Riyadh announced the transfer of the Central Bank from the Capital, Sana’a, to the city of Aden in the south. The decision to transfer CBY administration to Aden had catastrophic consequences for the lives of public sector employees, whose salaries were suspended, which is their only source of income and on which they depend to secure their basic needs. This has exacerbated the employees’ economic situation and caused food insecurity to their dependents.
- The Central Bank of Yemen was transferred from the Capital, Sana’a, to the governorate of Aden in August 2016, under the auspices of the UN, with moral commitments to maintain the impartiality of the bank and ensure the payment of salaries to all. The so-called Hadi government in Aden has also promised to pay the salaries of all public sector employees, based on the December-2014 lists. However, Hadi government repudiated its commitments, ignoring all calls and appeals for employees’ salaries. They also ignored the severe economic conditions of these employees, whose families have been vulnerable to diseases and epidemics, and are incapable to get the most basic needs, as a result of the high cost of living.
- Oil and gas production facilities and ports are still under the control of the War Coalition countries, which keep on depleting, collecting and looting the revenues of these facilities. In fact, oil and gas revenues can cover the salaries of public sector employees, finance imports of basic commodities, calm exchange rate fluctuations, reduce inflation waves, resume the monetary cycle in the national economy, and ease the humanitarian crisis in all regions of Yemen.
- This month, the port of Aden received four cash money containers of large-sized 1,000 riyals banknotes, despite the continued collapse of the local currency against foreign currencies in southern and eastern Yemen, due to the useless financial policies and decisions of Hadi government and CBY in Aden. On the contrary, the National Salvation Government in Sana’a proclaimed that this newly printed banknote is a counterfeit currency that cannot be traded.
- The Central Bank of Aden announces the injection of billions of newly printed banknotes, the large-sized one-thousand-riyal bill to enhance its circulation further, without identifying the printed amount. Notably, the local currency in the occupied southern areas under the control of the Saudi-Emirati aggression coalition has witnessed a new collapse in its value against foreign currencies, as the exchange rate in Aden, Hadramout and the remaining southern regions reached 1050 YR per one US dollar, while the Saudi riyal has reached 280 YR. On the contrary, the Yemeni Riyal maintained a state of stability in the Capital, Sana’a, as the dollar rate has not exceeded the limits of 600 YR against the US dollar.
- The World Food Program (WFP) states that Yemen may face a financial deficit over the coming months, with the continued suffering of millions of people who are incapable to purchase sufficient food due to the rise in food prices by more than 22% during the first half of 2021, as the Yemeni riyal hits a record low of 1,000 YR per I USD in the areas of Hadi government. Besides, the inadequate consumption of food reached more than 40%. They added that the program had received more than $1 billion out of the $1.9 billion needed to continue aid.
- As the oil derivatives ships are detained and prevented from docking at Hodeidah port despite obtaining UN pass permits, Yemenis in all governorates have to bear huge amounts that vary from one governorate to another to obtain gasoline. This also coincides with a significant deterioration in living conditions and the suspension of basic services.
- Yemeni markets in all governorates witnessed an increase in the prices of basic commodities, including food and clothing, which far exceeded the purchasing power of the citizen amid the difficult living conditions resulting from the ongoing war on Yemen for more than six years.
