Yemen economic and currency instability

In late September 2026, Yemen experienced significant regional disparities in gold prices and exchange rates between Houthi-controlled areas like Sanaa and government-controlled areas such as Aden. While gold prices remained relatively stable, the structural differences in local currency values created a wide gap in the purchasing power of the Yemeni riyal across different territories.

By late October 2026, the situation escalated into a currency exchange crisis in Aden and Mukalla. Exchange companies reportedly ceased selling foreign currencies, specifically the US Dollar and Saudi Riyal, while continuing to purchase them from citizens. This liquidity shortage led to the emergence of a parallel market where traders sold the Saudi Riyal at higher rates than official exchange firms.

This development has raised concerns regarding currency speculation and increased financial pressure on the population. Observers have noted that these market shifts coincide with rising military tensions, leading to fears that the exchange market may become a parallel front in the ongoing conflict.