ADEN, Yemen, Aug. 4 (Xinhua) -- Yemen's currency surged to 1,617 rials per U.S. dollar in government-controlled areas on Monday, a dramatic 40-percent recovery from nearly 2,900 rials weeks prior, which has sparked cautious optimism after years of economic collapse in the war-torn country.
Banking sources confirm the rebound, attributing it to the Aden-based Central Bank of Yemen's revocation of 24 exchange firms' licenses for rate manipulation and tightened oversight.
On Saturday, Yemen's Prime Minister Salem Bin Buraik ordered joint inspection teams to enforce price reductions aligned with the new rate, warning traders of penalties.
"Any improvement in the currency exchange rate must be accompanied by a corresponding decrease in the prices of basic commodities, especially those imported by major traders and suppliers in foreign currencies," he was quoted as saying by the state-run Saba news agency.
The gains contrast sharply with escalating unrest in Hadramout province, where week-long protests over electricity shortages and economic hardship have shuttered businesses and suspended transportation.
Clashes between security forces and demonstrators in the provincial capital of Mukalla disrupted commercial activity, with protesters blaming authorities for deteriorating conditions.
Yemeni citizens have reported mixed impacts concerning the turnaround. Ahmed Sadiq from Mansourah neighborhood in Aden noted restored purchasing power "absent for several years." Hazim Radfani called the rebound "a sign of more effective government economic management," and voiced hope for continued stabilization, whereas Salma Ba-Saleh acknowledged only a "small change" in goods pricing, stressing that "life is still hard."
"While currency stabilization has generated considerable public enthusiasm, the translation to reduced commodity pricing remains incomplete and challenges remain and need more time," said economic activist Rashid Alwaly.
"Continued progress requires systematic market regulation, comprehensive price monitoring, and enhanced institutional capacity to prevent manipulation," Alwaly said.
"Citizens maintain simultaneous feelings of encouragement and apprehension regarding the sustainability of these monetary improvements," Alwaly observed, underscoring the fragility of progress in a nation enduring its 10th year of conflict-induced humanitarian crisis. ■
