Yemen replaces central bank governor, deputy governor amid currency collapse

This picture taken on June 23, 2021 shows a view of the exterior of Yemen’s Central Bank headquarters in the Houthi militia-held capital Sanaa. (AFP)

• Yemen is witnessing a sharp deterioration in the value of its riyal currency
• The central bank maintains an official rate of 530 riyal to the dollar

RIYADH: Yemeni President Abed Rabbo Mansour Hadi replaced the central bank governor and deputy governor on Monday amid an unprecedented collapse in the local currency.
The Yemeni state news agency SABA, quoting a presidential decree, said Ahmed bin Ahmed Ghaleb Al-Maabqi had been appointed central bank governor, and Muhammad Omar Banaja his deputy.
War-torn Yemen is witnessing a sharp deterioration in the value of its riyal currency, recording 1,700 to the dollar, an all time low, on the black market on Monday, according to traders and exchange offices. The central bank maintains an official rate of 530 riyal to the dollar.
Yemen is split between an internationally recognized government in the south, backed by an Arab coalition, and the Iran-backed Houthi movement that controls most of the north. Each side has a central bank with opposing policies.
The Aden central bank in the south, which has access to international financial markets, has increasingly turned to printing new currency notes to cover the government’s deficit and pay public sector wages, especially those of security and military forces.