The Studies and Economic Media Center (SEMC) has expressed deep concern over the accelerating economic collapse in Yemen, as popular protests continue to erupt across the country due to the unprecedented devaluation of the Yemen’s currency. The exchange rate of the Yemeni Riyal has surpassed 2,500 YER per USD, compared to 220 YER per USD at the onset of the conflict in 2015. This reflects a depreciation of over 1,000% and highlighting the depth of the country’s monetary and economic crisis.
This economic deterioration coincides with a series of overlapping and worsening crises, including:
- A lack of political and economic resolution prospects.
- A near-total halt of oil exports, previously a main source of Yemen’s revenue.
- Institutional division and fragmented public revenues, with unchecked public spending amid a lack of transparency and effective oversight.
- A significant drop in international aid, as the 2025 Humanitarian Response Plan for Yemen has received only 9% of its required funding by May, the lowest level in over a decade.
- A severe liquidity crisis, sharp economic contraction, and international isolation in the Houthi-controlled areas, paralleled by a state of service paralysis and administrative failure in Yemen’s government-held areas.
These factors have significantly worsened living conditions for millions of Yemenis and pushed hundreds of thousands of families below the poverty line, unable to meet their basic needs.
In light of this grim reality, and amid reports that the internationally recognized government in Yemen is considering printing new banknotes (Injection of additional local banknotes into the market without sufficient monetary backing or underlying assets) to cover its fiscal deficit, the SEMC warns against such a move, describing it as an economically reckless decision that could lead to:
- Further inflation and rising consumer prices;
- A deeper erosion of citizens’ purchasing power;
- A collapse in what remains of trust in the banking system and the national currency;
- Increased protests and potential conflict that could undermine what remains of Yemen’s already fragile state institutions.
“Resorting to printing new banknotes without economic backing or a national recovery strategy is a dangerous gamble,” said Mustafa Nasr, Chairman of the SEMC.
“Such a step would fuel hyperinflation, destroy confidence in the economy, and inflict further suffering on ordinary Yemenis.”
The SEMC urges all stakeholders to prioritize immediate and comprehensive economic reforms, including:
- Unification of public revenue streams under transparent administration;
- Strengthening of financial governance and enhanced accountability over public resources;
- The return of government leadership to the country to engage with citizens and address social justice concerns;
- Resumption of oil and gas exports, with revenues directed toward public welfare and safeguarded for future generations;
- Increased international humanitarian support, with a shift toward sustainable development and production-focused aid;
- Consolidation of all external assistance through the national budget, accompanied by a clear, transparent government program and state budget, publicly disclosed and subject to review.
The SEMC underscores that the risk of total collapse is imminent, especially amid the absence of accountable leadership and the abdication of responsibility by various Yemeni parties. The SEMC holds all parties accountable for the current crisis and calls for urgent attention to the needs of the Yemeni people who are demanding their most basic rights in the streets, rather than continuing down a path of destructive financial policies.
Issued by: Studies and Economic Media Center (SEMC)
Contact: +967 736500078
Website: www.economicmedia.net
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