Currency exchange crisis in Aden and Mukalla

Exchange companies in Aden and Mukalla, Hadramaut, have reportedly stopped selling foreign and Arab currencies, most notably the Saudi Riyal and US Dollar, while continuing to purchase them from citizens at fixed rates. In Aden and Mukalla, exchange firms are buying the Saudi Riyal at approximately 410 Yemeni Rials, but refusing to sell it, citing a lack of liquidity.

This discrepancy has led to the emergence of a parallel market where traders are selling the Saudi Riyal for around 420 Yemeni Rials. This price gap has raised concerns regarding potential currency speculation and increased financial pressure on citizens who rely on foreign currency for daily transactions and basic living expenses.

The situation coincides with rising military tensions, leading to fears that the exchange market could become a parallel front in the ongoing conflict. Observers are questioning whether the refusal to sell is due to actual liquidity shortages, market anticipation of price jumps, or attempts by financial actors to exploit public anxiety caused by military developments.