Yemen faces severe cash shortages despite Yemeni riyal stabilisation

In Yemen, the government's efforts to curb the devaluation of the Yemeni riyal have led to a stabilisation of the currency, but have also created a severe liquidity crunch. The Central Bank of Yemen, based in the southern city of Aden, has implemented measures to control currency speculation and provide traders with hard currency.

Despite these efforts, cash shortages have worsened, with people in government-controlled cities such as Aden, Taiz, and Mukalla struggling to access Yemeni riyals. Many are unable to convert foreign currency, such as US dollars or Saudi riyals, into local cash, leading to a thriving black market for currency exchange.

The cash shortage has paralysed businesses and left many Yemenis unable to access their savings or use their hard currency. Mohammed Omer, a small grocery shop owner in Mukalla, said he has spent hours trying to convert Saudi riyals into Yemeni riyals, but has been unable to do so due to the cash shortage.

The Yemeni government has acknowledged the cash shortage and approved short-term measures to address the problem. However, the crisis has highlighted the country's ongoing economic struggles, which have been exacerbated by the war between the Saudi-backed government and the Iran-aligned Houthis.