The Central Bank of Aden, controlled by the Saudi-led coalition, has implemented alarming measures to halt trading in the national currency in southern Yemen. This move threatens to plunge the already fragile national economy into chaos.
The Bank of Aden issued a directive requiring businesses and financial institutions to deposit old banknotes within 60 days, exacerbating economic turmoil. Citizens and businesses must exchange official currency for unbacked, illegal tender, deepening the economic crisis in the region.
Economic experts warn that the Bank’s policies will destabilize the economy further, as the government has irresponsibly printed trillions of riyals without financial backing, worsening inflation and currency devaluation.
As the situation unfolds, it is evident that drastic economic reforms are urgently needed to prevent a complete economic collapse in southern Yemen.
YPA