Including currency unification..UN envoy's office reveals ongoing discussions to avoid deeper economic collapse in Yemen

An official in the office of the UN envoy to Yemen revealed that ongoing consultations are being held with officials of the Central Bank in Sana’a and Aden to find technical and sustainable solutions to avoid a deeper economic collapse, including assessing the optimal money supply and unifying the exchange rate throughout the country.

The official told Asharq Al-Awsat that he held discussions on this matter in Sana’a this month, noting that “the unified currency and the unified banking sector bring financial strength and stimulus to the economy,” as he put it.

In response to a question about his efforts to unify the currency and the “Central Bank” in Sana’a and Aden, the official explained that “unifying the banking sector and the currency is an essential step to ensure the payment of salaries of public sector employees, which is vital for millions of Yemenis.”

The official pointed out that his office has been working since the beginning of the banking crisis last April with the Central Bank in Sana’a and Aden to discuss technical and sustainable solutions to avoid a deeper economic collapse, “including assessing the optimal money supply, ensuring exchange rate stability, and financing government spending in a sustainable manner.”

He stressed that "consultations are ongoing regarding these and other options. Recently, discussions were held this month in Sana'a."

He continued: "We reaffirm that a unified currency and a unified banking sector bring financial strength, economic stimulus, and increased purchasing power for Yemenis. To achieve the people's interest, these issues must be kept away from politicization."

The statements of the UN envoy's office come at a time when the Yemeni government (internationally recognized) is trying to control the sharp decline in the national currency, amid deteriorating economic and living conditions in the country, nearly 10 years after the Houthi group's coup and their control of the capital, Sana'a, by force.

On Thursday, the Yemeni currency witnessed a record decline in the liberated governorates against foreign currencies, as the purchase price of the dollar against the Yemeni riyal reached 2026 riyals, and the selling price was 2050 riyals, while the purchase price of the Saudi riyal was recorded at 532 riyals, and 535 riyals for sale.