Yemeni Riyal Plummets Amid Economic Collapse and Rising Protests

Widespread protests erupted in Aden, Lahj, and Al-Dhale, with citizens rallying against the currency’s devaluation and chronic electricity shortages.

The Yemeni riyal has continued its dramatic decline against foreign currencies, hitting new lows in the parallel market in Aden, the country’s temporary capital, and other regions under the control of the internationally recognized government.

The currency’s freefall has sparked warnings of a deepening humanitarian crisis, as authorities remain powerless to stop the accelerating economic collapse. Meanwhile, widespread protests erupted in Aden, Lahj, and Al-Dhale, with citizens rallying against the currency’s devaluation and chronic electricity shortages.

According to banking sources speaking to Khabar Agency, the US dollar reached an unprecedented exchange rate of 2,287 Yemeni riyals for purchase, while the Saudi riyal surged to 597 riyals—its highest level in months. These sharp fluctuations have further destabilized the parallel market, which has become the primary arena for currency exchange amid the absence of effective government oversight.

Economic analysts have linked the riyal’s decline to the Yemeni government’s worsening financial crisis, exacerbated by the halt in oil export revenues since late 2022. The Houthi militia’s attacks on export facilities in Shabwa and Hadramout’s oil ports have crippled the country’s primary source of hard currency, plunging the economy into deeper turmoil.

Additional factors compounding the crisis include a 40% drop in foreign remittances compared to the previous year, the collapse of state institutions due to persistent political divisions, and the lack of security stability.

The parallel market’s dominance over currency exchange, coupled with the absence of regulatory oversight, has further fueled the economic chaos.

Mass Protests Erupt Across Yemen

On Sunday, February 9, 2025, Al-Dhale province in central Yemen saw a massive demonstration as citizens protested the deteriorating electricity crisis and the riyal’s collapse. Similar protests erupted in Aden and Lahj, with demonstrators demanding better public services and an end to the “collapse of living conditions.” Protesters carried banners condemning the government’s failure to address the economic crisis and called for immediate action to alleviate their suffering.

Banking sources have warned that the riyal’s continued devaluation is driving up the cost of basic goods. Official statistics indicate that the price of a monthly food basket for a family of six has surged by 35% over the past three months, pushing more households into poverty.

As the crisis deepens, economic experts are urging the government to take urgent measures, including injecting foreign currency reserves and revising monetary policies. However, many Yemenis remain skeptical, with citizens expressing frustration that “official promises to improve the situation vanish as the economic bleeding continues unchecked.”

The ongoing economic collapse and rising public unrest underscore the urgent need for comprehensive solutions to address Yemen’s multifaceted crisis. Without decisive action, the country risks further destabilization, with dire consequences for its already suffering population.