Central Bank: Saudi-American conspiracy behind the collapse of the Yemeni currency exchange rate

The Central Bank of Yemen in Sanaa on Tuesday said there is a Saudi-American plot behind the collapse of the Yemeni currency exchange rate.

An official source at the Central Bank held the exile Hadi’s government responsible for the deterioration of the national currency’s price against foreign currency until it reached over 600 riyals per US dollar.

“This deterioration is due to the erroneous banking policies pursued by the Central Bank in Aden since the bank’s management was transferred from Sanaa,” the sources said.

He explained that Aden’s central bank resorted to printing new banknotes with a total amount that reached in three years to one trillion and 700 billion riyals, which is more than twice what the Central Bank in Sanaa printed since its foundation 40 years ago, while the money supply in 2015 did not exceed 850 billion riyals.

These policies led to a decrease in the purchasing power of the riyal (twice of its value) and a rise in the dollar price from 250 to 600 riyals, in addition to the fact that the currency exchange rate will continue to collapse at each printing, the source added.

Y.A