Yemen bans use of foreign currency in local trade
According to the state-run Saba news agency, the decision prohibits foreign currency use in transactions like tuition fees, medical expenses, rent and travel tickets, where foreign payment is not inherently required, News.Az reports citing foreign media.
Ministers and provincial governors are tasked with enforcing the ban and reporting progress to the prime minister on a regular basis, Saba reported.
This measure aims to strengthen the rial's sovereignty and stability. Currency traders in Aden told Xinhua that the rial surged to 1,617 per US dollar in government-controlled areas on Monday, a 40-percent recovery from nearly 2,900 weeks earlier.
Yemen faces an unprecedented financial crisis after more than two years without oil revenue, which constitutes 70 percent of government income. The crisis deepened following
Houthi attacks on oil export facilities in southern Yemen in late 2022, and amid the prolonged conflict since 2014.
The war-torn Arab nation remains divided between the internationally-recognised government based in Aden and the Houthis that control the capital Sanaa and northern regions.
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Yemen bans use of foreign currency in local trade
Yemen's internationally-recognized government announced on Tuesday that all commercial transactions within areas under its control must be conducted using the Yemeni rial, prohibiting the use of foreign currencies for domestic trade and services. According to the state-run Saba news agency, the decision prohibits foreign currency use in transactions like tuition fees, medical expenses, rent and travel tickets, where foreign payment is not inherently required, reports citing foreign media. Ministers and provincial governors are tasked with enforcing the ban and reporting progress to the prime minister on a regular basis, Saba reported. This measure aims to strengthen the rial's sovereignty and stability. Currency traders in Aden told Xinhua that the rial surged to 1,617 per US dollar in government-controlled areas on Monday, a 40-percent recovery from nearly 2,900 weeks earlier. Yemen faces an unprecedented financial crisis after more than two years without oil revenue, which constitutes 70 percent of government income. The crisis deepened following Houthi attacks on oil export facilities in southern Yemen in late 2022, and amid the prolonged conflict since 2014. The war-torn Arab nation remains divided between the internationally-recognised government based in Aden and the Houthis that control the capital Sanaa and northern regions.
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