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The National Team For Foreign Outreach - Yemen

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ECONOMIC SITUATION – May 2021

  1. The countries of the War Coalition against Yemen continue to show no seriousness in directing their mercenaries in the occupied areas to pay the public sector employees’ salaries, which have been suspended since the transfer of CBY administration from the Capital, Sana’a, to Aden Governorate in September 2016. The number of these employees is almost one million and 250 thousand, not to mention tens of thousands of contract-based and hired employees in every sector of the civil service. As a result of the severe conditions created by the war and siege, most of these employees left their official jobs and turned to search for other jobs in the exhausting labor market so as to earn a living and meet the requirements of life in a country experiencing the worst unprecedented humanitarian crisis the world.
  2. The so-called Hadi government, urged by the War Coalition countries, continues to get more new and illegal banknotes printed by the Russian company, Goznak, with the aim of destroying the Yemeni economy and accelerating the collapse of the national currency. This poses serious risks to the Yemeni economy and to the living condition in the occupied governorates, as the inflation rates in the prices of basic foodstuffs have increased to the highest levels in the markets of the occupied governorates where the price of a 50-gram loaf of bread reached 40 YR, and the price of a bag of wheat amounted to 25,000 YR. This rise in prices is a result of the excessive inflationary tendency to print banknotes without cash cover.
  3. The popular concern increases day by day with the constant rise in foreign exchange rates and the sharp decline of the value of Yemeni riyal in the areas under the Saudi-UAE occupation, where the exchange rates in Aden reached nearly 1000 YR for one US dollar. 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.
  4. 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, some of these ships had to return back to their places of departure without unloading their cargo due to the long period of detention, despite obtaining the UNVIM pass permits. This has resulted in the rise of prices and the collapse of the basic service sectors. The detention of oil derivatives ships further exacerbated the humanitarian, health and service conditions, as the demurrage and detention charges doubled, prices raised and the basic services collapsed.

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