Yemen’s government shuts down unlicensed exchange firms to stop riyal devaluation

Special Yemen’s government shuts down unlicensed exchange firms to stop riyal devaluation
The Yemeni government has long accused local money traders of engaging in currency speculation. (AFP)
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Updated 04 November 2024
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Yemen’s government shuts down unlicensed exchange firms to stop riyal devaluation

Yemen’s government shuts down unlicensed exchange firms to stop riyal devaluation
  • Local money traders and media said that the riyal was trading at 2050 against the dollar
  • Yemeni government closed dozens of exchange firms in Aden, Yemen’s interim capital, Hadramout, Shabwa, and Mahra that lack or have expired licenses

AL-MUKALLA: The Yemeni riyal stabilized on Monday near its all-time low of 2050 against the dollar in government-controlled areas, as the Yemeni government launched a campaign targeting unlicensed exchange firms.

Local money traders and media said that the riyal was trading at 2050 against the dollar, maintaining the same record low, days after breaking the historic low of 2000 against the dollar. In early 2015, the Yemeni riyal was worth 215 per dollar.

This comes as the Yemeni government closed dozens of exchange firms in Aden, Yemen’s interim capital, Hadramout, Shabwa, and Mahra that lack or have expired licenses.

Local officials, escorted by armed policemen, were seen in the streets of Aden, Al-Mukalla in Hadramout, Attaq in Shabwa, and Al-Ghaydah in Mahra province, inspecting exchange firms and shops’ licenses and closing the doors of unlicensed firms to slow the devaluation of the Yemeni riyal.

The Yemeni government has long accused local money traders of engaging in currency speculation, which resulted in the Yemeni riyal’s rapid devaluation.

Another reason for the devaluation, according to the Yemeni government, is the Houthis’ attacks on oil terminals in Hadramout and Shabwa in late 2022, which resulted in a complete halt to oil exports.

Saleh Fadaeq, the head of the central bank branch in Shabwa, said on Monday that the campaign against unauthorized exchange firms would continue to stop the Yemeni riyal’s devaluation, end currency speculation, and combat money laundering, according to the official news agency SABA.

The Presidential Leadership Council and the Yemeni government have recently requested financial assistance from international donors to help stabilize the Yemeni riyal, pay employees, and fund critical projects.

Yemenis across the political and social spectrum have warned of a major humanitarian crisis in Yemen, as the rapid devaluation of the riyal has driven up the prices of food, fuel, and other essential commodities, pushing people deeper into poverty.

Ismael Al-Sharabi wrote on Facebook that the riyal’s depreciation is causing “a humanitarian crisis,” with the prices for basic food items reaching unprecedented highs. He urged the Yemeni government to quickly bring under control the riyal’s fall.

“A tomato now costs 1,000 riyals. This is a humanitarian disaster and a historical curse that has befallen these people, who are now fighting death to survive, swallowing all burdens, high prices, and extreme poverty,” Al-Sharabi said.

High prices caused by the riyal’s devaluation have sparked violent protests in Aden and Al-Mukalla, as well as other Yemeni cities under government control, over the last several years.

Mustafa Nasr, director of the Studies and Economic Media Center, said the government’s campaign against unlicensed exchange firms did not lead to the riyal’s recovery as it only targeted small firms and not the large exchange firms that control the market, calling for stricter government measures to prevent the riyal’s fall.

“The exchange sector has become disorganized, bloated, and has sufficient liquidity to influence the exchange market,” Nasr told Arab News.

In its most recent report on the Yemeni economy, released late last month, the World Bank depicted a bleak economy in 2025, saying that Yemen’s gross domestic product is expected to fall by 1 percent in 2024, compared to a 2 percent drop last year.

Sixty percent of Yemenis have insufficient access to food due to an unprecedented level of insecurity brought about by the war, and the Houthis’ attacks on oil terminals slashed 42 percent of the government’s revenues, making it difficult for it to provide public services and devaluing the Yemeni riyal, according to the World Bank.


Israeli strikes hit two Syria border crossings with Lebanon

Israeli strikes hit two Syria border crossings with Lebanon
Updated 2 sec ago
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Israeli strikes hit two Syria border crossings with Lebanon

Israeli strikes hit two Syria border crossings with Lebanon
  • Strikes hit the Arida crossing in northern Lebanon and the Jousieh crossing which links to eastern Lebanon
BEIRUT: Israeli strikes early on Friday hit two border crossings linking Lebanon with Syria, Lebanon’s transport minister Ali Hamieh said.
The strikes hit just across the border on the Syrian side of both the Arida crossing in northern Lebanon and the Jousieh crossing which links to eastern Lebanon, Hamieh said.
Both crossings are important access points to Syria’s Homs province, where anti-government rebels are seeking to advance against government forces after sweeping through northern Syria.

Iran says it conducted a successful space launch in program long criticized by West

Iran says it conducted a successful space launch in program long criticized by West
Updated 5 min 57 sec ago
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Iran says it conducted a successful space launch in program long criticized by West

Iran says it conducted a successful space launch in program long criticized by West
  • Iran conducted the launch using its Simorgh program, a satellite-carrying rocket that had seen a series of failed launches

MANAMA, Bahrain: Iran said Friday it conducted a successful space launch, the latest for its program the West alleges improves Tehran’s ballistic missile program.
Iran conducted the launch using its Simorgh program, a satellite-carrying rocket that had seen a series of failed launches. The launch took place at Iran’s Imam Khomeini Spaceport in rural Semnan province.
There was no immediate independent confirmation the launch was successful.
The announcement comes as heightened tensions grip the wider Middle East over Israel’s continued war on Hamas in the Gaza Strip and as an uneasy ceasefire holds in Lebanon.


Strikes on key bridge linking Syria’s Homs, Hama: war monitor

Strikes on key bridge linking Syria’s Homs, Hama: war monitor
Updated 06 December 2024
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Strikes on key bridge linking Syria’s Homs, Hama: war monitor

Strikes on key bridge linking Syria’s Homs, Hama: war monitor
  • Air strikes targeted a bridge on the highway linking the Syrian cities of Homs and Hama, a war monitor said Friday

BEIRUT: Air strikes targeted a bridge on the highway linking the Syrian cities of Homs and Hama, a war monitor said Friday, as government forces scramble to secure Homs after Islamist-led militants captured Hama and commercial hub Aleppo.
“Fighter jets executed several airstrikes, targeting Al-Rastan bridge on (the) Homs-Hama highway... as well as attacking positions around the bridge, attempting to cut off the road between Hama and Homs and secure Homs,” the Britain-based Syrian Observatory for Human Rights said.
The militants led by Islamist group Hayat Tahrir Al-Sham (HTS) launched their offensive a little more than a week ago, just as a ceasefire in neighboring Lebanon took hold between Israel and Syrian President Bashar Assad’s ally Hezbollah.
To slow the militants advance, the Observatory said Assad’s forces erected soil barriers on the highway north of Homs, Syria’s third-largest city which lies just 40 kilometers (25 miles) south of Hama.
Tens of thousands of members of Assad’s Alawite minority community were fleeing Homs on Thursday, for fear that the militants would keep up their advance, the Observatory said earlier.
The militants captured Hama on Thursday following street battles with government forces, announcing “the complete liberation of the city” in a message on their Telegram channel.
Militant fighters kissed the ground and let off volleys of celebratory gunfire as they entered Syria’s fourth-largest city.
Many residents turned out to welcome the militants. An AFP photographer saw some residents set fire to a giant poster of Assad on the facade of city hall.
The army admitted losing control of the city, strategically located between Aleppo and Assad’s seat of power in Damascus.
Defense Minister Ali Abbas insisted that the army’s withdrawal was a “temporary tactical measure.”
“Our forces are still in the vicinity,” he said in a statement carried by the official SANA news agency.


Aron Lund, a fellow of the Century International think tank, called the loss of Hama “a massive, massive blow to the Syrian government” because the army should have had an advantage there to reverse militants gains “and they couldn’t do it.”
He said HTS would now try to push on toward Homs, where many residents were already leaving on Thursday.
Observatory director Rami Abdel Rahman reported a mass exodus from the city of members of Assad’s Alawite minority community.
He said tens of thousands were heading toward areas along Syria’s Mediterranean coast, where the Alawites, followers of an offshoot of Shiite Islam, form the majority.
“We are afraid and worried that what happened in Hama will be repeated in Homs,” said a civil servant, who gave his name only as Abbas.
“We fear they (the militants) will take revenge on us,” the 33-year-old said.
Until last week, the war in Syria had been mostly dormant for years, but analysts have said it was bound to resume as it was never truly resolved.
In a video posted online, HTS leader Abu Mohammed Al-Jolani said his fighters had entered Hama to “cleanse the wound that has endured in Syria for 40 years,” referring to a crackdown on the Muslim Brotherhood in 1982, which led to thousands of deaths.
In a later message on Telegram congratulating “the people of Hama on their victory,” he used his real name, Ahmed Al-Sharaa, instead of his nom de guerre for the first time.


The Observatory, which relies on a network of sources in Syria, said 826 people, mostly combatants but also including 111 civilians, have been killed in the country since the violence erupted last week.
It marks the most intense fighting since 2020 in the civil war sparked by the repression of pro-democracy protests in 2011.
Key to the militants’ successes since the start of the offensive last week was the takeover of Aleppo, which in more than a decade of war had never entirely fallen out of government hands.
While the advancing militants met little resistance earlier in their offensive, the fighting around Hama has been especially fierce.
Assad ordered a 50-percent raise in career soldiers’ pay, state news agency SANA reported Wednesday, as he seeks to bolster his forces for a counteroffensive.
Militants drove back the Syrian armed forces despite the fact that the government sent in “large military convoys,” the Observatory said.
The militants launched their offensive in northern Syria on November 27, the same day a ceasefire took effect in the war between Israel and Hezbollah in neighboring Lebanon.
Both Hezbollah and Russia have been crucial backers of Assad’s government, but have been mired in their own conflicts in recent years.
HTS is rooted in Syria’s Al-Qaeda branch.
The group has sought to moderate its image in recent years, but experts say it faces a challenge convincing Western governments it has fully renounced hard-line jihadism.
The United States maintains hundreds of troops in eastern Syria as part of a coalition formed against Daesh group jihadists.


Israel FM says ‘may have opportunity’ for Gaza hostage deal

Israel FM says ‘may have opportunity’ for Gaza hostage deal
Updated 06 December 2024
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Israel FM says ‘may have opportunity’ for Gaza hostage deal

Israel FM says ‘may have opportunity’ for Gaza hostage deal

JERUSALEM: Foreign Minister Gideon Saar said Thursday that Israel may have “an opportunity now” to secure a deal for the release of its hostages held by Palestinian militants in Gaza.
Speaking in a video message from a meeting in Malta, he said: “We may have an opportunity now for a hostage deal. Israel is serious about reaching a hostage deal and I hope we can do this and do it as soon as possible.”


Palestinian security forces exchange gunfire with militants in West Bank

Palestinian security forces exchange gunfire with militants in West Bank
Updated 06 December 2024
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Palestinian security forces exchange gunfire with militants in West Bank

Palestinian security forces exchange gunfire with militants in West Bank

JENIN: Gunfights erupted in Jenin in the north of the occupied West Bank on Thursday between militants and Palestinian security forces following the theft of vehicles belonging to the Palestinian Authority, according to AFP journalists in the city.
The intense exchanges of fire began around 9:30 PM (1930 GMT) and followed the deployment of members of the security forces around the Jenin refugee camp, which is adjacent to the city and a stronghold for armed groups in the territory, according to the journalist.
Witnesses reported that the Palestinian security forces set up roadblocks on routes leaving the camp.
Tensions were running high in Jenin earlier in the day after a group of armed men seized two vehicles belonging to the PA and paraded through the streets waving Islamic Jihad flags.
In a statement, General Anwar Rajab, spokesman for the security forces, said “a group of outlaws opened fire on the headquarters of the security services” and stole two vehicles.
He said the security forces would “recover the vehicles and hold accountable anyone who committed this act.”
Tensions between the PA and armed groups appear to have been exacerbated by recent arrests by the security forces.
At a press conference inside Jenin camp, Mahmud Abu Talal, spokesman for a collective of local armed groups, said the PA had “abandoned its people in the most difficult circumstances.”
He rejected the label of outlaws and accused the PA of “carrying out a continuous operation to undermine those who protect their people.”
Jenin has long been a bastion of Palestinian armed groups and was the focus of a major Israeli raid launched at the end of August.
Violence in the West Bank, already increasing, surged after the start of the war in Gaza in October 2023.
Israel has occupied the territory since 1967.