The Yemeni riyal has plunged to record lows against the US dollar amid a severe dollar shortage and halt in oil exports.
Currency traders in Aden told Reuters that the riyal lost around 100 rials against the dollar over the past month, and 200 rials since May. The black market exchange rate hit 1400 rials per dollar last weekend.
The currency collapse comes as Yemen has been unable to export oil for the past nine months due to attacks by Houthi rebels which the government blames for over $1 billion in lost revenues. Oil exports previously accounted for about 70% of the government's foreign exchange earnings.
A currency trader in Aden said the rapid devaluation of the riyal had led to sharp daily increases in prices, with many Yemenis unable to afford basic goods.
The dollar shortage has been exacerbated by a lack of foreign currency inflows and due to the economic fallout of Yemen's long-running civil war.
The government warned that the riyal's recent slump could further drive inflation and make it harder for ordinary citizens to cope with soaring costs of living.
In summary, the Yemeni riyal has come under severe pressure due to a combination of halted oil exports, dollar shortages and the impact of the war - leaving many struggling to afford basic necessities as prices skyrocket.
