UN report: Yemeni riyal lost 26% of its value in a year in government-controlled areas

A UN report said that the Yemeni riyal lost 26% of its value within a year in areas controlled by the internationally recognized government, warning of a further decline in the currency throughout the country due to the ongoing banking crisis.

This came in the Yemeni Market and Trade Bulletin for the month of August, issued by the Food and Agriculture Organization of the United Nations (FAO), yesterday, Sunday.

The organization said in its bulletin, "The local currency (Yemeni riyal) in areas controlled by the recognized government continued its downward trend against the US dollar, declining by 2 percent on a monthly basis, reaching a historic low of 1,904 Yemeni riyals/1 US dollar in August 2024."

She added that the riyal lost 26 percent of its value on an annual basis, and 38 percent against the 3-year average.

She pointed out that the weakness of the Yemeni riyal in the areas of the Yemeni government is primarily due to the depletion of foreign exchange reserves, which has recently been exacerbated by the turmoil in the banking sector.

Alphao warned that the ongoing banking crisis between the legitimate government authorities and the Houthis could lead to a further decline in the currency throughout the country.