Yemeni Rial Plummets as Government Funds Diverted to Groups
In a statement issued Wednesday from its Aden headquarters, the Central Bank of Yemen (CBY) partially blamed the collapse on Houthi-led assaults on state revenue streams, particularly targeting oil infrastructure since October 2022. The attacks have crippled Yemen's primary source of foreign currency, exacerbating the economic crisis.
The CBY also condemned rampant illicit revenue practices, urging the internationally recognized Presidential Leadership Council (PLC) to channel all state funds into official central bank accounts. 'Diverting revenues to parallel entities undermines fiscal stability and national priorities,' the statement warned.
In a rare admission, the bank acknowledged that significant government income is being siphoned by armed factions and corrupt networks, exposing systemic graft that has hollowed out institutions. Meanwhile, over 17 million Yemenis face acute hunger as food prices skyrocket.
Economic analysts confirm that staple foods like wheat, rice, and sugar now sell at 300% above pre-war levels. With cash reserves depleted, families increasingly rely on piecemeal purchases, unable to afford bulk quantities. 'The rial's collapse isn't just economic—it's a death sentence for millions,' said a local trader in Aden.
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