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The National Team For Foreign Outreach - Yemen

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ECONOMIC SITUATION – October 2020

The month of October 2020 did not witness any serious moves or new developments indicating a breakthrough in resolving the issue of public employees’ salaries, which have been suspended since the transfer of CBY administration from the capital, Sana’a, to the governorate of Aden in September 2016. As a result, more than 80% of Yemeni population, especially employees living in areas under the control of the National Salvation Government, suffer enormously due to salaries nonpayment. Only some civil servants living in the provinces occupied by Saudi Arabia, the UAE, and their mercenaries are being paid. This has led to the biggest humanitarian disaster in the world.

Yemeni riyal exchange rates continue to depreciate against foreign currencies in all governorates, especially in the occupied southern governorates controlled by Saudi Arabia and the UAE. This was rapidly reflected on food prices, as the exchange rate reached 850 Yemeni riyals against one US dollar. On the contrary, the National Salvation Government in Sana’a maintained the exchange rate at 600 riyals against the US dollar, by taking precautionary measures, the foremost of which was preventing the circulation of the recently printed currency in order to control the rate of inflation.

The US-KSA-led countries of War Coalition against Yemen continued to impose an unjust blockade through acts of piracy, detention and restriction of the movement of ships loaded with oil derivatives, foodstuffs and medicines that cover the needs of 80% of the Yemeni population, to the port of Hodeidah for several months, despite obtaining UN entry pass permits after being subjected to the procedures of verification and inspection. This has resulted in the collapse of sectors and operational capacities that provide basic services to citizens. In addition, the level of financial losses, estimated in millions of dollars, has increased because of detaining these ships and preventing their entry to the port of Hodeidah.

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