The month of September 2020 did not witness any serious moves towards resolving the issue of public employees’ salaries, which have been suspended since the relocation of CBY administration from the Capital, Sana’a, to the governorate of Aden in September 2016. As a result, 80% of the Yemeni population suffers enormously because the caretakers of families have not received their salaries, and this has led to the largest unprecedented humanitarian disaster in modern history.
Yemeni riyal exchange rates continue to depreciate against foreign currencies in all governorates, especially in southern governorates controlled by the Saudi and UAE occupation. This was rapidly reflected on food prices, as the exchange rate reached 860 riyals against one dollar. On the other hand, 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 612 riyals against the dollar. In this regard, Aden Money Exchange Association issued a circular to all companies and institutions of the banking sector to suspend all sales and purchases of foreign currencies, in protest against the collapse of the local currency.
The Central Bank of Aden issued a circular to banks and exchange companies to completely stop domestic financial transfers in foreign currency, restricting them to the Yemeni riyal only, and limiting withdrawals and deposits to foreign currency accounts to the branches where those accounts are located. This shows the failed monetary policies followed by the bank due to printing huge quantities of local currency without cover and the absence of a national government.
The World Food Program (WFB) indicated that the Yemeni riyal has lost 25% of its value during 2020, which is equivalent to 70% when compared to its pre-war value in 2015. WFP also confirmed that the depletion of the country’s foreign exchange reserves could cripple Yemen’s ability to import foodstuffs entirely, warning of a famine due to the high prices of foodstuffs in the domestic market.
The countries of war coalition against Yemen consistently use their economic warfare policy against Yemen with a view to starve Yemenis. Accordingly, the so-called Hadi government announced the commencement of special procedures to separate Sabafon Telecommunication Company from its headquarters in Sana’a, in preparation for its transfer to the governorate of Aden, which is controlled by the Saudi-UAE occupation.
The Ministry of Agriculture and Irrigation in Sana’a stated that total direct and indirect losses and damages caused to the agricultural sector, due to the war of the aggression coalition led by the US, KSA and the UAE since 2015, have exceeded 10 trillion, 701 billion and 867 million Yemeni riyals. The Ministry affirms that Yemen’s production of food grain crops decreased during the years of war on Yemen, until it reached 300,500 tons now, compared to 700,000 tons in 2014.
Yemen Petroleum Company (YPC) in Sana’a confirmed that the Yemeni people has lost over YR 27 billion as late fines due to the continued detention of oil derivatives ships within six months. It also indicated that 19 ships are still detained by the aggression coalition for almost 4 to 6 months, despite having UN entry pass permits. During the past two months, no oil ship was released to cover general needs. This has currently led more than 2000 fuel stations to suspend operating due to the depletion of their reserves of petroleum products. Likewise, 3500 tankers and 3 factories have stopped working, while the citizens’ cars and equipment have been disrupted.