Economic journalist: Restarting Aden refineries will provide the state treasury with large resources and will contribute to stabilizing the value of the riyal

A journalist specializing in economic affairs advised the Yemeni government to restart the Aden refineries to overcome the problem of scarcity of financial resources as a result of the halt in oil exports due to Houthi attacks, noting that this would provide the general treasury with large revenues and would contribute to the stability of the national currency.

Journalist Wafiq Saleh said in a post on the X platform, monitored by the editor of "Yemeni Youth Net", that if the government is unable to reactivate oil exports, it is supposed to work on re-operating the Aden refineries, to refine crude oil and provide the local market's fuel needs.

He explained that the re-operation of Aden refineries "will reduce the import bill by more than 60%, and the demand for purchasing hard currency will decline, which will create stability in the exchange market and in the value of the national currency."

He added, "Operating the refineries will provide the government treasury with significant financial revenues, and will enable it to meet its financial obligations towards paying salaries and spending on basic services."

If the government fails to reactivate oil exports, it will work to restart the Aden refineries to refine crude oil and provide the local market’s fuel needs. This will reduce the import bill by more than 60%, and the demand for purchasing hard currency will decline, which will stabilize the exchange market.

— Wafeeq Saleh (@wafeeqpress) October 20, 2024

The Yemeni government is facing a severe financial crisis with the continued halt in oil exports as a result of the Houthis targeting export ports for more than two years, which has caused a delay in the payment of salaries to a number of government employees, and difficulty in spending on providing basic services to citizens.

As a result of the ongoing financial crisis and the scarcity of foreign currencies, the areas under the control of the legitimate government are witnessing an unprecedented collapse of the national currency, as the selling price of one dollar has exceeded the two thousand riyal barrier during the past few days, amid the government’s inability to curb this collapse.