Yemeni riyal breaks all-time low of 1,770 against dollar

The riyal was 215 to the dollar when the Houthis placed the Yemeni President Abed Rabbo Mansour Hadi under house arrest in early 2019. (Reuters/File Photo)
The riyal was 215 to the dollar when the Houthis placed the Yemeni President Abed Rabbo Mansour Hadi under house arrest in early 2019. (Reuters/File Photo)
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Updated 03 June 2024
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Yemeni riyal breaks all-time low of 1,770 against dollar

Yemeni riyal breaks all-time low of 1,770 against dollar
  • Local currency trading at 215 to the dollar in late 2014 when war in Yemen broke out

AL-MUKALLA: The Yemeni riyal fell to an all-time low of 1,770 against the dollar on Monday in Yemeni-government-controlled districts, a drop likely to drive up prices and spark violence.

Local money traders and local media said on Monday that the Yemeni riyal was edging closer to a historic record low of 1,800 against the dollar in Aden, Al-Mukalla and other Yemeni districts controlled by the internationally recognized Yemeni government. 

In January, the riyal reached a record low of 1,600 against the dollar in government-controlled provinces, two months after it had fallen to a new low of 1,500 against the dollar.

The local currency was trading at 215 to the dollar in late 2014 when the war in Yemen broke out after the Houthis took control of the capital, Sanaa.

It reached an all-time low of 1,700 against the dollar in December 2021, but rebounded to 1,200 after Saudi Arabia injected hundreds of millions of dollars into the central bank in Aden.

The rate of the currency in the Houthi-controlled areas has stayed consistent at 527 against the dollar since late 2016.

The Yemeni government and the central bank in Aden have not commented on the latest drop in the currency, but they usually blame currency speculation by black-market money traders as well as the Houthis, who deprived the Yemeni government of oil revenues by attacking oil terminals in southern Yemen.

In an attempt to control a chaotic market, Adens central bank has previously shut down unlicensed exchange companies, held public auctions to sell the dollar to local food and fuel importers, ordered financial institutions to submit annual statements to the bank, and linked local exchange companies in a unified remittance system under its supervision.

These measures failed to slow the riyal’s devaluation.

The Yemeni riyal used to rebound once a new government was formed or when Saudi Arabia and the UAE made additional deposits into the central bank. 

The depreciation of the currency has led to increases in fuel, food and transport costs, forcing millions of Yemenis into poverty, according to local and international aid agencies. 

The riyal’s decline in government-controlled provinces of Yemen was attributed to the central bank’s diminishing foreign currency reserves, the cessation of oil exports, and a decrease in remittances from outside the country, according to the World Food Programme’s most recent regular bulletin on food security in Yemen, which was released on Saturday.

The bulletin said, referring to the internationally recognized government of Yemen based in southern Yemen, that the “disruption of oil exports resulted in a nearly $2 billion loss in IRG revenues. The worsening economic situation has also increased food and fuel prices in the south.”

State workers say their wages have not risen in more than a decade and have lost more than 200 percent of their value while prices have skyrocketed.

The devaluation of the riyal has prompted teachers in Yemen’s Hadramout province to go on strike to demand a pay raise.

Taha Bafadhel, a teacher from Ghayel Bawazer in Hadramout, told Arab News that he was currently required to work three jobs to support his family and make ends meet and that educators have fallen into poverty as a result of the devaluation of the riyal and poor salaries.

“The salary has become insufficient to cover a third of the family’s expenses, necessitating additional work to cover the remaining expenses. Even a second job would not meet the expenses,” he said. “The reason for this is the currency collapse, which has resulted in a rise in prices, and also unchanged salaries.” 


Turkish court jails protesters over Erdogan speech disruption

Turkish court jails protesters over Erdogan speech disruption
Updated 56 min 44 sec ago
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Turkish court jails protesters over Erdogan speech disruption

Turkish court jails protesters over Erdogan speech disruption
  • The protesters said the government was failing to uphold its pro-Palestinian rhetoric
  • The Istanbul Chief Public Prosecutor’s Office said the group had coordinated their actions inside and outside the venue and sought their detention pending trial

ANKARA: A Turkish court has jailed pending trial nine protesters who disrupted President Tayyip Erdogan’s speech in Istanbul last week, accusing his government of continuing oil exports to Israel despite a publicized embargo.
The incident occurred during Erdogan’s televised address at a forum on Friday, where the protesters said the government was failing to uphold its pro-Palestinian rhetoric.
They chanted slogans such as “Ships are carrying bombs to Gaza” and “Stop fueling genocide.”
Erdogan responded sharply.
“My child, don’t become the mouthpiece of Zionists here. No matter how much you try to provoke by acting as their voice, mouth, and eyes, you will not succeed,” he said.
“Zionists around the world know very well where Tayyip Erdogan stands. But it seems you still haven’t understood.”
Police removed the demonstrators from the event, and prosecutors charged them with insulting the president and participating in an illegal demonstration.
The Istanbul Chief Public Prosecutor’s Office said the group had coordinated their actions inside and outside the venue and sought their detention pending trial.
The arrests have drawn strong criticism from opposition politicians and rights advocates. Main opposition Republican People’s Party (CHP) leader Ozgur Ozel denounced the detentions as a blow to democracy.
“The decision to arrest nine young people who protested Tayyip Erdogan proves the grave situation our country’s democracy has fallen into,” Ozel said.
“These young people were exercising their right to free expression and should be released immediately.”


Israeli leaders applaud Trump pledge on hostages, Gazans fear the worse

Israeli leaders applaud Trump pledge on hostages, Gazans fear the worse
Updated 03 December 2024
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Israeli leaders applaud Trump pledge on hostages, Gazans fear the worse

Israeli leaders applaud Trump pledge on hostages, Gazans fear the worse
  • Finance Minister Bezalel Smotrich said: “This is the way to bring back the hostages: by increasing the pressure and the costs for Hamas and its supporters“
  • Foreign Minister Gideon Saar said simply on X: “Thank you President Trump“

JERUSALEM/CAIRO: Israeli leaders hailed on Tuesday a pledge by US President-elect Donald Trump that there would be “hell to pay” in the Middle East unless hostages held in the Gaza Strip were released ahead of his Jan. 20 inauguration.
The reaction in Gaza was less enthusiastic.
Writing on Truth Social, and without naming any group, Trump said the hostages had to be freed by the time he was sworn in.
If his demand was not met, he said: “Those responsible will be hit harder than anybody has been hit in the long and storied History of the United States of America.”
During their deadly 2023 attack on Israel, Hamas-led militants captured more than 250 people. Some have been released or freed but around half of them are still in Gaza, although at least a third of these are believed to be dead.
Israeli ministers lined up to thank Trump for his hard-hitting words.
“How refreshing it is to hear clear and morally sound statements that do not create a false equivalence or call for addressing ‘both sides’, but rather clarify who are the good and who are the bad,” said Finance Minister Bezalel Smotrich.
“This is the way to bring back the hostages: by increasing the pressure and the costs for Hamas and its supporters, and defeating them, rather than giving in to their absurd demands.”
Foreign Minister Gideon Saar said simply on X: “Thank you President Trump.”
Likewise the families of the missing hostages expressed their gratitude. “It is now evident to all: the time has come. We must bring them home NOW,” the families forum said.

NEGOTIATIONS STALLED
Israel and Hamas have held on-off negotiations since October 2023, but after an initial hostage release in November, little progress has been made with both sides blaming each other.
Responding to Trump’s post, senior Hamas official Basem Naim said Israeli Prime Minister Benjamin Netanyahu had sabotaged all efforts to secure a deal that involved exchanging the hostages for Palestinian prisoners held in Israeli prisons.
“Therefore, we understand (Trump’s) message is directed first at Netanyahu and his government to end this evil game,” he told Reuters.
Gaza political analyst Ramiz Moghani said Trump’s threat was directed at both Hamas and its backer Iran, and warned that it would embolden Israel to not expel Palestinians from swathes of Gaza but also annex the nearby, Israeli-occupied West Bank.
“These statements have serious implications for the Israeli war in Gaza and the West Bank,” he told Reuters.
Mohammed Dahlan, like hundreds of thousands of Gazans, has had to flee his house because of the fighting and is desperate for the war to end. But he said he was shocked by Trump.
“We were hoping that the new administration would bring with it a breakthrough .... but it seems (Trump) is in complete agreement with the Israeli administration and that there are apparently more punitive measures ahead,” he said.


Israel kills 23 people in north Gaza, orders evacuations in south

Israel kills 23 people in north Gaza, orders evacuations in south
Updated 03 December 2024
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Israel kills 23 people in north Gaza, orders evacuations in south

Israel kills 23 people in north Gaza, orders evacuations in south
  • Medics said eight people had been killed in a series of airstrikes in Beit Lahiya while four others were killed elsewhere in Gaza City
  • An Israeli airstrike later killed two people and wounded others in Jabalia

CAIRO: Israeli military strikes killed at least 23 Palestinians across the Gaza Strip on Tuesday, most of them in the town of Beit Lahiya on the northern edge, medics said, as the army issued new evacuation orders in the south of the small enclave.
Medics said eight people had been killed in a series of airstrikes in Beit Lahiya while four others were killed elsewhere in Gaza City.
An Israeli airstrike later killed two people and wounded others in Jabalia, the largest of Gaza’s eight historic refugee camps, in the coastal enclave’s north, medics said.
Another air attack, on Al-Falah School sheltering displaced families in Gaza City’s Zeitoun suburb, killed six people and wounded others, medics said, while in Rafah in the far south, three women were killed by Israeli drone fire, they added.
The Israeli army has been operating in Jabalia and also in the towns of Beit Lahiya and Beit Hanoun since October. Israeli forces have killed hundreds of militants in the three locations since the operation began, the army has said.
The army says it is targeting regrouping Hamas-led militants who often use civilian buildings including schools and hospitals for operational cover. Hamas denies this, accusing Israeli forces of indiscriminate bombardments.
Hamas and its smaller ally Islamic Jihad have said their fighters have killed several Israeli soldiers in guerrilla-style ambushes since October.
Palestinians have accused Israel’s army of trying to drive people from the northern edge of Gaza with forced evacuations and bombardments to create a buffer zone. The army denies this, saying it has returned there to prevent Hamas fighters from renewing operations in an area from which they had been cleared.
The Palestinian Civil Emergency Service said its operations in Jabalia, Beit Lahiya and Beit Hanoun had now been halted for nearly four weeks due to Israeli attacks on their teams as well as fuel shortages.
On Tuesday it said 13 of 27 vehicles in central and southern Gaza were also stuck for lack of fuel. It said 88 members of the Civil Emergency Service had been killed, 304 wounded and 21 detained by Israel since the
war began in October 2023.

EVACUATION ORDERS
The Israeli army issued evacuation orders on Tuesday to residents in northern districts of Khan Younis, a city in south Gaza, citing the firing of rockets by militants from those areas. The orders, the latest of many, prompted the hurried exodus of families, mostly before dawn, in a westerly direction.
“For your own safety, you must evacuate the area immediately and move to the humanitarian zone,” the army said in a statement on X.
Palestinian and United Nations officials say there are no safe areas in the enclave. Most of Gaza’s 2.3 million people have been internally displaced, some as many as 10 times in all.
Israel launched its campaign in the densely populated enclave after Hamas-led fighters attacked Israeli communities across the border on Oct. 7, 2023, killing 1,200 people and taking over 250 hostages, according to Israeli tallies.
Israel’s military campaign has since killed more than 44,400 Palestinians, injured many others, and reduced much of the enclave to rubble.


Retiring UN official laments lack of diplomatic focus on Palestinian state

Retiring UN official laments lack of diplomatic focus on Palestinian state
Updated 03 December 2024
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Retiring UN official laments lack of diplomatic focus on Palestinian state

Retiring UN official laments lack of diplomatic focus on Palestinian state
  • Tor Wennesland, special coordinator for Mideast peace process, criticizes short-term fixes
  • Warns against opponents of Palestinian sovereignty setting terms of debate

LONDON: World leaders have wrongly focused on short-term fixes at the expense of pushing for a Palestinian state, the UN’s special coordinator for the Middle East peace process has said.

Tor Wennesland, who is retiring after a four-year tenure, told the New York Times that the international community had focused on improving Gaza’s economy and diplomatic deals between Israel and Arab states, but that these approaches have failed to solve the central issue driving the conflict: the lack of a permanent settlement between Israel and the Palestinians.

“Politics failed. Diplomacy failed. The international community failed. And the parties failed,” he said. “What we have seen is the failure of dealing with the real conflict, the failure of politics and diplomacy.”

Western leaders have failed to convince Israel of the need for Palestinian sovereignty, having been distracted by migration crises, the COVID-19 pandemic and the war in Ukraine, Wennesland added.

“Politics is what ends war, and diplomacy is what ends war,” he said, adding that international attention has been shifting “toward dealing with the day-to-day humanitarian situation, and with less attention on the politics.”

The perceived decline in the viability of the two-state solution among Western officials risks becoming a self-fulfilling prophecy as it allows opponents of Palestinian statehood to set the terms of debate, Wennesland said.

“The spoilers have been more effective, determined and fast moving than diplomats and politicians,” he added.


Gazans walk miles for bread and flour amid war shortages

Gazans walk miles for bread and flour amid war shortages
Updated 48 min 35 sec ago
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Gazans walk miles for bread and flour amid war shortages

Gazans walk miles for bread and flour amid war shortages
  • Every morning crowds form outside the few bakeries open in the Palestinian territory, as people desperately try to get a bag of bread at distribution points
  • Essential goods like water, fresh produce and medicines are also scarce

GAZA: Faced with major food shortages after nearly 14 months of war, Palestinians describe long days hunting for flour and bread in the conflict-ravaged Gaza Strip.
Every morning crowds form outside the few bakeries open in the Palestinian territory, as people desperately try to get a bag of bread at distribution points.
Since the outbreak of war in Gaza last year, charities and international aid organizations have repeatedly warned of crisis levels of hunger for nearly two million people.
A United Nations-backed assessment last month warned of famine looming in the northern Gaza Strip amid a near-halt in food aid after Israel launched an offensive in the area.
Essential goods like water, fresh produce and medicines are also scarce.
Gazans across the territory have told AFP in recent months how they wake up at the crack of dawn just to ensure they can get some flour or bread, with current availability reaching an all-time low.
In the southern city of Khan Yunis, AFP photographers saw dozens of people at a distribution point, bodies pressed against each other.
Over each other’s heads, everyone tries to reach out as far as possible to grab the round bread.
A small child, her face covered in tears, squeezes a coin between her fingers as she makes her way through the crowd of adults.
“I walked about eight kilometers (five miles) to get bread,” Hatem Kullab, a displaced Palestinian living in a neighborhood of makeshift tents, told AFP.
It was in the middle of one of these crowds that two women and a child were trampled to death in a stampede at a bakery in the central Gazan city of Deir el-Balah Friday.
“To get a loaf of bread you need a whole day of eight to 10 hours,” said the brother of one of the women killed, describing his sister’s ordeal as she tried to get bread to feed 10 family members.
“The suffering that my sister went through is suffered by all the Palestinian people,” Jameel Fayyad told AFP, criticizing what he described as poor management of the bakeries.
Fayyad’s anger was largely directed at Israel, but he also blamed the World Food Programme (WFP) and “traders who want to make money on the backs of people.”
Palestinians from across the Gaza Strip told AFP journalists that it is extremely difficult to find the 50-kilogram (110 pounds) bags of flour that would last them several weeks before the war.
“There is no flour, no food, no vegetables in the markets,” Nasser Al-Shawa, 56, said, who, like most residents, was forced to leave his home because of the bombings and lives with his children and grandchildren in central Gaza.
Shawa, who now lives in a friend’s house in Deir el-Balah, says a 50-kilogram bag costs between 500 and 700 shekels ($137 and $192).
Before the war, it cost around 100 shekels.
Inside Gaza where more than half of the buildings have been destroyed, the production is at an almost complete standstill. Flour mills, warehouses storing flour and industrial bakeries are unable to function because they have been so heavily damaged by strikes.
Humanitarian aid is trickling in but aid groups have repeatedly slammed the many constraints imposed on them by Israel, which the country denies.
In the latest blow, the UN agency supporting Palestinian refugees (UNRWA) announced Sunday it was halting aid deliveries to Gaza via a key crossing point with Israel.
UNRWA said delivery had become impossible, partly due to looting by gangs.
For Layla Hamad, who lives in a tent with her husband and seven children in southern Gaza’s Al-Mawasi, UNRWA’s decision was “like a bullet to the head.”
She said her family had regularly received “a small quantity” of flour from UNRWA.
“Every day, I think we will not survive, either because we will be killed by Israeli bombing or by hunger,” she said. “There is no third option.”
The majority of private companies that Israel had in the past allowed to bring in food to Gaza say they are no longer able to do so.
The war in Gaza broke out after Hamas’s October 7, 2023, attack on southern Israel, which resulted in the deaths of 1,208 people, mostly civilians, according to an AFP tally based on official data.
Israel’s retaliatory military campaign in Gaza has killed at least 44,502 deaths, also mostly civilians, according to data from Gaza’s Hamas-run health ministry that the UN considers reliable.