Yemeni riyal in free fall again amid political deadlock

The riyal was 215 to the dollar when the Houthis placed the Yemeni President Abed Rabbo Mansour Hadi under house arrest in early 2019. (Shutterstock)
The riyal was 215 to the dollar when the Houthis placed the Yemeni President Abed Rabbo Mansour Hadi under house arrest in early 2019. (Shutterstock)
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Updated 30 May 2021

Yemeni riyal in free fall again amid political deadlock

The riyal was 215 to the dollar when the Houthis placed the Yemeni President Abed Rabbo Mansour Hadi under house arrest in early 2019. (Shutterstock)
  • Trades at 930 to dollar in government-controlled areas, plunging from 900 riyals 2 weeks ago
  • Experts link the current fall of the riyal to the outcome of UN-brokered peace efforts

AL-MUKALLA: Yemen’s riyal hit a new record low on the weekend amid deadlocked diplomatic efforts to end the war and rising tensions between the Yemeni government and southern separatists in Aden. 

The riyal traded at 930 to the dollar on Saturday in the government-controlled areas, plunging from 900 riyals a couple of weeks ago. 

The riyal was 215 to the dollar when the Houthis placed the Yemeni President Abed Rabbo Mansour Hadi under house arrest in early 2019, sparking the current conflict.

When the new unity government, formed under the Riyadh Agreement in December, returned to Aden as troops withdrew from Abyan, the Yemeni riyal surged to 720 against the US dollar, recovering almost 20 percent of its value. 

Experts link the current fall of the riyal to the outcome of UN-brokered peace efforts, renewed hostilities between the Yemeni government and the separatist Southern Transitional Council (STC), and the government’s failure to resume oil exports and collecting revenues from state bodies.

“The fall of the riyal is due to the economic and political instability in Yemen,” Mustafa Nasr, director of the Economic Media Center, told Arab News on Saturday. 

Politically, the UN Yemen envoy Martin Griffiths’ latest diplomatic shuttle between Riyadh and Muscat yielded no fruit as warring factions rejected his peace initiative, known as the Joint Declaration, that proposes putting into place a nationwide truce. 

The Houthis are still pressing ahead with their deadly offensive on the central city of Marib despite international condemnations and appeals. 

In Aden, the interim capital of Yemen, the internationally recognized government has not returned to the city for more than two months amid reports about renewed tension with the STC. 

The STC on Saturday appointed Gen. Shalal Ali-Shayae as the commander of counterterrorism forces in Aden, fueling tension with the government whose supporters accused the separatists of violating the Riyadh Agreement. 

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The STC on Saturday appointed Gen. Shalal Ali-Shayae as the commander of counterterrorism forces in Aden, fueling tension with the government whose supporters accused the separatists of violating the Riyadh Agreement.

Shayae, former security chief of Aden and a senior separatist figure, was appointed in December as a military attache at the Yemen Embassy in the UAE. 

“The implantation of the Riyadh Agreement (in December) sent positive signals about new economic policies and support to the economy,” Nasr said, adding that the Yemeni riyal plunged again after the government did not remain in Aden or apply reforms to boost revenues and exports. 

“Many negative things have happened recently. The crisis in Aden returned. The government neither improved revenues that generate hard currencies nor created a mechanism for covering exports of goods and fuel. To pay public servants, the government printed millions of riyals without coverage,” he said. 

During previous rounds of devaluation of the national currency, the Yemeni government replaced the central bank governors, shut down exchange firms to put an end to currency speculation, and provided local fuel and goods traders with the dollar. 

The government also floated the riyal to bridge the gap between the official rate and that of the black market and relocated the central bank office from Sanaa to Aden. 

The Yemeni government blamed the Houthis for banning the use of new banknotes printed by the Yemeni government in Aden and refusing to deposit revenues from Hodeidah seaports and tax into the central bank in Aden. 

Economists argue that the Yemeni riyal would keep falling against the dollar as long as the Yemeni government remains outside the country.

The depreciation of the riyal has led to an expected surge in the price of foods and fuel and sparked protests in several Yemeni cities. 

Hundreds of people took to the streets of Aden and Taiz to voice rage over the collapse of the Yemeni currency and the subsequent increase in the price of food and goods. 

“My salary has lost more than 20 percent of its value due to the devaluation of the riyal. My relatives in Saudi Arabia donate to me to keep me afloat since my salary can’t cover my expenses,” Abu Abdullah, a government employee, told Arab News.


Cyprus to vaccinate children aged 12-15 to beat virus

Cyprus to vaccinate children aged 12-15 to beat virus
Updated 30 July 2021

Cyprus to vaccinate children aged 12-15 to beat virus

Cyprus to vaccinate children aged 12-15 to beat virus
  • Health Minister Michalis Hadjipantelas announced that vaccination for children aged between 12 and 15 starts Monday
  • Over 20 per cent of Cypriot teenagers aged 16-17 have received a vaccine shot

NICOSIA: Cyprus decided Friday to expand its Covid-19 vaccination rollout to cover children aged 12 to 15, as authorities tackle a fourth wave of coronavirus.
Health Minister Michalis Hadjipantelas announced that vaccination for children aged between 12 and 15 would start Monday.
“The vaccination will be voluntary and with the necessary consent of the parents or legal guardians,” he said.
“Already several European Union countries, such as France, Germany, Italy, Lithuania, and Greece, vaccinate children aged 12-15 to achieve greater protection of the population,” he told reporters.
Children will be vaccinated with an mRNA vaccine (Pfizer or Moderna).
Over 20 percent of Cypriot teenagers aged 16-17 have received a vaccine shot.
“The only way to stop new aggressive Covid-19 variants is to vaccinate,” said Hadjipantelas.
Cyprus is experiencing a new surge in cases, peaking at 1,152 on 15 July.
The surge is blamed on the more potent Delta variant and a low vaccination rate among the under 30s.
In a bid to contain the spike, the cabinet decided Friday that unvaccinated visitors and tourists staying longer than seven days will need to take a PCR test after a week’s stay.
Currently, there are no restrictions on vaccinated tourists entering the country.
The island has endured three national lockdowns in the past 16 months, and the government is trying to avoid another one to save the economy.
Hospitals have postponed all non-emergency operations as Covid wards reach capacity.
The health ministry said Cyprus has inoculated 73 percent of the eligible population with a first jab, and 64 percent are fully vaccinated.
The target is to reach “herd immunity” of 80 percent by the end of August.
Government-controlled southern Cyprus has registered over 100,000 confirmed cases of coronavirus infection and 416 deaths since the pandemic reached its shores in March 2020.
Wearing face masks and social distancing are compulsory.


Lebanon president ready to answer questions on Beirut blast

Lebanon president ready to answer questions on Beirut blast
Updated 30 July 2021

Lebanon president ready to answer questions on Beirut blast

Lebanon president ready to answer questions on Beirut blast
  • Many Lebanese are angry that nearly a year after the incident, no senior official has yet been held responsible

BEIRUT: Lebanon’s President Michel Aoun told the country’s public prosecutor on Friday he was ready to give a statement about last year’s port blast in the capital Beirut if needed.
“No one is above the law no matter how high up, and justice can only be achieved through the specialized judicial branches that provide guarantees,” Aoun told prosecutor Ghassan Ouidat during a meeting, according to a statement released by the president’s office.
The Aug. 4 explosion at the port, caused by a huge quantity of ammonium nitrate stored unsafely for years, killed over 200 people, injured thousands and destroyed large swathes of the capital.
A probe into the blast led by judge Tarek Bitar has been hindered over the past month as requests sent to parliament and the government to lift immunity and enable questioning of several top officials were either declined or stalled.
Many Lebanese are angry that nearly a year after the incident, no senior official has yet been held responsible.
Influential parliament speaker Nabih Berri said on Thursday the legislature was ready to lift the immunity of its members to allow for questioning but did not detail when or how this would be done.


Israel’s president gets third COVID-19 shot, urges boosters for over-60s

Israel’s president gets third COVID-19 shot, urges boosters for over-60s
Updated 30 July 2021

Israel’s president gets third COVID-19 shot, urges boosters for over-60s

Israel’s president gets third COVID-19 shot, urges boosters for over-60s
  • Israel was a world leader in the vaccination rollout, and around 57 percent of the 9.3 million population has been double-vaccinated

JERUSALEM: Israeli President Isaac Herzog received a third shot of coronavirus vaccine on Friday, kicking off a campaign to give booster doses to people aged over 60 as part of efforts to slow the spread of the highly contagious Delta variant.
Herzog, 60, received a booster dose of the Pfizer/BioNTech COVID-19 vaccine at the Sheba Medical Center in Tel Aviv. He said he was proud to launch the booster vaccination initiative “which is so vital to enable normal circumstances of life as much as possible in this very challenging pandemic.”
The president was accompanied by Prime Minister Naftali Bennett, who urged the importance of booster shots in fighting the COVID-19 pandemic and pledged that Israel would share all the information it gleaned from the initiative.
“Israel is a pioneer in going ahead with the third dose for older people of the age of 60 and above. The fight against the COVID pandemic is a global fight. The only way we can defeat COVID is together,” Bennett said.
The booster campaign, with shots administered by health maintenance organizations, will effectively turn Israel into a testing ground for a third dose before approval by the US Food and Drug Administration (FDA).
On the eve of the booster rollout Bennett said Israel had already given 2,000 immunosuppressed people a third dose with no severe adverse events.
His government hopes that stepped up inoculation efforts will help avoid further costly lockdowns.
Israel was a world leader in the vaccination rollout, and around 57 percent of the 9.3 million population has been double-vaccinated. Many seniors got their first shots in December, January and February as they were regarded as the most vulnerable sector of the population.
But since the emergence of the Delta variant, the health ministry has twice reported a drop in the vaccine’s efficacy against infection and a slight decrease in its protection against severe disease.
Daily new infections have spiked to more than 2,000, up from a handful of cases per day a few months ago and about 160 people are currently hospitalized with severe symptoms.


Two crew killed in attack on Israeli-managed tanker off Oman

Two crew killed in attack on Israeli-managed tanker off Oman
Updated 13 min 43 sec ago

Two crew killed in attack on Israeli-managed tanker off Oman

Two crew killed in attack on Israeli-managed tanker off Oman
  • Zodiac said on its website that the attack in the Arabian Sea on the Mercer Street was still being investigated
  • The UKMTO said the vessel was about 280 km northeast of the Omani port of Duqm when it was attacked

DUBAI: Two crew members, a Briton and a Romanian, were killed when a petroleum products tanker managed by Israeli-owned Zodiac Maritime came under attack on Thursday off Oman's coast, the company said on Friday.
London-based Zodiac said on its website that the attack in the Arabian Sea on the Mercer Street, a Liberian-flagged Japanese-owned ship, was still being investigated.
Earlier on Friday it had described the incident as suspected piracy but the United Kingdom Maritime Trade Operations (UKMTO), which provides maritime security information, says it was not piracy.
"Details of the incident are still being established and an investigation into the incident is currently underway. We continue to work closely with the UKMTO and other relevant authorities," said Zodiac, which is owned by the wealthy Israeli Ofer family.
It said it was "not aware of harm to any other personnel" than the British and Romanian crew members who were killed.
The UKMTO said the vessel was about 152 nautical miles (280 km) northeast of the Omani port of Duqm when it was attacked. It gave no more details on the type of vessel, any cargo, to whom it belonged or about possible casualties.
Zodiac said the ship was now sailing under the control of its crew and own power to a safe location with a US naval escort.
In an advisory note, UKMTO said it had been informed that regional search and rescue authorities and coalition forces have been tasked to assist the vessel.
According to Refinitiv ship tracking, the Mercer Street, a medium-size tanker, was headed to Fujairah, a bunkering port and oil terminal in the United Arab Emirates, from Dar es Salaam, in Tanzania.
Tensions have risen in the Gulf region since the United States reimposed sanctions on Iran in 2018 after then-President Donald Trump withdrew Washington from Tehran's 2015 nuclear deal with major powers.
Washington has blamed Iran for a number of attacks on shipping in strategic Gulf waters, including on four vessels, including two Saudi oil tankers, in May 2019. Iran distanced itself from those attacks.
In recent months Iran and Israel have traded accusations of attacking each other's vessels.
 


Jordan tourism expected to boom by 2023, tourism officials say

The tourism sector in Jordan has gradually started to signs of a positive trend after a near collapse. (AN photo/Sarah Glubb)
The tourism sector in Jordan has gradually started to signs of a positive trend after a near collapse. (AN photo/Sarah Glubb)
Updated 30 July 2021

Jordan tourism expected to boom by 2023, tourism officials say

The tourism sector in Jordan has gradually started to signs of a positive trend after a near collapse. (AN photo/Sarah Glubb)
  • Regional tourism has started picking up and international tourists are expected to return in August, September and October
  • King Abdullah II directed the government to work intensively, through its ambassadors, to depict Jordan as a ‘green’ country for traveling

AMMAN/LONDON: The tourism sector in Jordan has gradually started to show signs of a positive trend after a near collapse due to the coronavirus (COVID-19) pandemic, tourism officials said.
The Ministry of Tourism and Antiquities and the Jordan Tourism Board (JTB) began opening up to domestic tourism, and then to Gulf and neighboring countries, in order to facilitate border movement, Dr. Abed Al-Razzaq Arabiyat, the managing director of the JTB told Arab News.
“We expect the return of international tourism during August, September and October after overcoming several obstacles,” Arabiyat added.
Jordan stood out for its low COVID-19 rates at the start of the pandemic but then saw an exponential rise in confirmed cases, and by November recorded the highest number of coronavirus-related deaths per capita in the Middle East. Authorities declared a state of emergency and imposed one of the strictest lockdowns in the world, hitting the tourism sector hard.
Jordan has since managed to flatten the epidemiological curve, has moved from a UK “red list” country to an “amber” one, and in February significantly accelerated its inoculation campaign.

 


“Societal immunity is high and our epidemiological situation gives positive indications that a complete breakthrough for tourism in the kingdom is near,” Arabiyat said, adding that Jordan has eased more restrictions compared to many other countries, which will play a major role in attracting tourists.
He said King Abdullah II directed the government to work intensively, through its ambassadors, to depict Jordan as a green country, and that it is “clearly moving in that direction.” Marketing campaigns are in place and tourism offices are ready to cooperate, as some countries have already moved the kingdom to their “green” lists. Jordanian hotels and resorts have also begun receiving international bookings from September to November.

The tourism sector in Jordan has gradually started to signs of a positive trend after a near collapse. (AN photo/Sarah Glubb)

Minister of Transport Wajih Azayza said that Queen Alia International Airport received 9 million passengers in 2019, and hopes to return to these numbers after the pandemic.
The airport said on July 17 it welcomed over 1.2 million passengers during first half of the year, with the highest number recorded in June with more than 389,000 passengers. The airport’s total economic contribution exceeded $3.53 billion (about 8.9 percent of GDP).

The government has also implemented subsidization programs and launched a tourism risk fund valued at $28.2 million to support the sector and alleviate damages. In 2019, Jordan received a record 3 million visitors, bringing in $5.78 billion, which fell to $1.41 billion in 2020.

The coronavirus pandemic has been a disaster for Jordan’s tourism industry, which suffered its worst contraction in decades last year. (AN photo/Sarah Glubb)

Last month, the king called for unified efforts to help the tourism and travel sector recover, which accounts for about 20 percent of GDP, and promote tourism to the “Golden Triangle” of Petra, Wadi Rum, and Aqaba.
Arabiyat said that Petra, one of the seven wonders of the world, was most affected due to its high dependence on international tourism, but expects to “hear positive news by September, as there is a demand for the ‘Golden Triangle.’”
From July 1, authorities implemented the second phase of Jordan’s strategy to return to normal life, with tourist facilities permitted to reopen at full capacity. The curfew in the areas of the “Golden Triangle” in the south were lifted, and fully vaccinated visitors may enter as they have been declared COVID-free zones. Phase 3 will begin on Sept. 1, provided that cases remain low and the government reaches its immunization target.

Jordan has greatly eased restrictions compared to many countries, which will play a major role in attracting inbound tourism. (AN photo/Sarah Glubb)

Arabiyat said JTB has also launched the “Breathe” summer marketing campaign to target tourists, particularly families, from Gulf countries.
He said after enduring two exhausting years of the pandemic, “returning to life as we knew it became a dream that everyone was yearning to live once more; yearning to travel and enjoy life, yearning to feel alive again, hence the name of our campaign ‘Breathe’… where people can enjoy life and just breathe.”
Fawzi Al-Hammouri, chairman of Jordan’s Private Hospitals Association, said there had been a remarkable increase in the number of patients arriving for treatment in Jordan in June, specifically from Saudi Arabia and other Gulf countries, after witnessing a decrease during the past year.
Arabiyat said, however, the greatest concern was preserving employment within the tourism sector.

Jordan is taking several steps to get the number of foreign tourists back to the record 3 million visitors in 2019. (AN photo/Sarah Glubb)

Layali Nashashibi, director of communications and public relations at Movenpick Hotels and Resorts, said they did not let go of any staff throughout the pandemic, even though they had to close both hotels in Petra and one in Aqaba, while the hotel in the Dead Sea was taken over by the government and used for quarantining when it started to bring Jordanians home from abroad.
“Aqaba, at the beginning, it was clean from COVID-19, but Aqaba has tourism and the port. So, if both closed, then the economy will suffer, so they decided that Aqaba would remain open from 6 a.m. until 5 p.m.,” Nashashibi told Arab News.
“I had to interfere with the government to extend some hours of the (hotels and) restaurants, as well as to have more facilities open,” she said, adding that after speaking with the prime minister, they managed to extend opening hours until 10 p.m. across the whole kingdom.

Government efforts to revive the tourism sector appear to be paying off but officials expect two years of recovery. (AN photo/Sarah Glubb)

“Now we are depending on international tourism to come back to Jordan … We are optimistic and we have been promised by the government, the Ministry of Tourism, and Jordan Tourism Board that Ryanair and EasyJet will resume flights (to Aqaba) by October,” she added. EasyJet has started taking bookings for Aqaba from November, while cruise ships have also began to trickle in with one from Jeddah expected to arrive in Aqaba at the beginning of August.
Nashashibi said they also hosted familiarization trips for tour operators. Authorities are offering different types of tax reductions and discounts on landing fees, and tourists from Eastern Europe started coming to Aqaba from the end of June, with planes from Russia expected to increase in the coming period.
The city is regulated by the Aqaba Special Economic Zone Authority, which has turned it into a low-tax, duty-free city, attracting several mega investment projects like Ayla Oasis, Saraya Aqaba, Marsa Zayed and the expansion of the port, all of which were greatly affected.

Officials announced special measures for Jordan’s ‘Golden Triangle’, which includes Petra, Wadi Rum and Aqaba, and fully vaccinated visitors may enter as they have been declared COVID-free zones. (AN photo/Sarah Glubb)

“Hopefully, COVID-19 will disappear and we return like before or better than before,” Nashashibi said, adding that she does not see tourism improving until the third quarter of 2022, and expects a boom in the tourism and economic sectors by 2023.
Sally Abu Hijleh, from Montana Travel and Tourism agency, also said it will take about a year for tourism to return, adding that they are working on offers and discounted prices to encourage travel.
For Marwan Eid Abo Al-Adas, owner of souvenir shop Bazaar Al-Wadeeh in Jarash, even if tourists return this summer, all the tourism sectors have suffered such heavy losses that, he believes, they will still struggle.“The compensation will be greater after two or three years (as) there must be continuity in the tourism sector,” he said.
Marwan Soudi, a Jordanian living abroad, who was not able to return home last year, said: “The way they are handling the pandemic here in Jordan, and the way they rolled out vaccines really fast, the authorities are saying that the tourism and just everything being back to normal by 2022-2023, I would say that sounds like a reasonable aim.”

 


Saudi tourist Abdul Aziz Al-Shalawi said due to Jordan having one of the lowest rates of infections, tourists from Saudi Arabia prefer to visit this summer more than any other country, especially Europe, as its “safety is excellent.”
He said Jordan was beautiful and diverse and that Saudis were also attracted to the kingdom for its medical options. “Jordan has potential and very good doctors and is focused on attracting tourists for treatment, whilst also enjoying their time,” he added.
American tourist Tom Langdon said he hoped tourism would open up more from July to help the Bedouins in Petra, and the people that rely on tourism.
“It’s pretty unfortunate. I went to Petra, and I think there was like maybe 20 people there, and one of the vendors showed me a video, and it looked like a rock concert, it looked like you could barely move without touching someone and he said that that’s how it used to be before COVID-19,” Langdon said.
“I think (Jordan) is an untapped source, I think it’s unfortunate that a lot of this isn’t known to more people. Pretty much every place that I’ve been here in Jordan has been absolutely beautiful (and) I’ve been having a pretty good time.”