Who is behind the troubles on the foreign exchange market in Aden?! Who benefits from what happened?!

Yemen

Yamanat – Special

Over the past two days, the foreign exchange market in the Yemeni governorates managed by the internationally recognized government has seen a further decline in foreign currencies against the Yemeni riyal, which has raised questions about the reality of what is being organized by the official authorities responsible for managing the foreign exchange market, especially since some products are still sold at prices higher than the official price set by the Central Bank of Aden, and this has remained stable for more than a month.

panic
This decline led citizens to gather in front of exchange offices and businesses in Aden and other cities, due to the prevailing state of panic, which pushed many people to exchange their foreign currencies for fear of a further collapse of the exchange rate, especially after the exchange rate of the Saudi riyal reached 350 Yemeni riyals, from 428 Yemeni riyals.

On the evening of Sunday, August 31, 2025, the Saudi Riyal exchange rate reached around 250 riyals in some areas, causing panic among citizens.

Solemn silence
The Central Bank’s silence, which lasted almost two days, prompted people to spend their money on foreign currencies and, with the increase in supply, exchange companies reduced the purchase price of foreign currencies, forcing them to buy quantities of currencies in Saudi riyals and dollars, at prices that reached less than 10% of the price set by the Central Bank.

Banking intervention
On Sunday evening, the Central Bank intervened late, announcing the stabilization of the previous exchange rate, and made a decision in which it confirmed that the amounts purchased by banks and foreign exchange companies over the past two days belonged to the Central Bank, pledging to take strict measures against violators to maintain market stability.

Who is behind the mess?!
After the intervention of the Central Bank, observers noted that the banking entities were the origin of the turbulence in the foreign exchange market, believing that the Central Bank was considered a partner in the process of turbulence by its silence for two days, noting that its decision to consider as its property what the banks and foreign exchange companies had purchased was proof of its involvement, since the harm was only caused to the citizen.

Director of the Center for Economic Studies and Media Mustafa Nasr called for the closure of foreign exchange companies that engaged in speculation and bought or sold in violation of the Central Bank rate.

Fraud offense
For his part, financial expert Wahid Al-Fudaei considered what happened recently as “the biggest fraudulent crime” in Yemen’s history, committed under the gaze of the authorities.

He saw on his Facebook account that the Government and the Central Bank are directly responsible before God and before the judiciary for the deception that hit the people, pointing out that they remained spectators of the largest fraud operation for more than thirty hours without any responsible explanatory statement, and that the statement was only published after the damage had occurred.

Doubts
He also considered it necessary to implement the decision of the Board of Directors of the Central Bank regarding the transfer of all hard currency purchases by banks and exchange offices over the last two days to the coffers of the Central Bank, at the same prices at which they were made, in order to support the import bill and maintain stability.

He expressed doubts about the Central Bank’s ability to control all purchases given the weak supervision of banks and exchange houses, which is still being regulated.

The biggest loser
But banking expert Ali Ahmed Al-Tuwaiti found that the loser in what happened recently is not the only citizen, considering that money changers are the biggest losers, but not everyone, noting that a few of them were successful or lucky.

Winners
He estimated on his Facebook account that the winners were only the big banks, because they had the most liquidity, pointing out that there were money changers who sold and lost.

Victims
Al-Tuwaiti pointed out that the rapid decline has claimed many lives, including traders, money changers and citizens.

He added: The citizen has lost, but he will not go bankrupt, unless he sells other people’s money and is obliged to repay it. As for money changers, some of them could go bankrupt and disappear from the market, and some could be imprisoned.

He continued: Most citizens sold the Saudi riyal for more than 350 Yemeni riyals, and very few of them sold it for “300” riyals or less. As for the changer who sold 350, he will not be able to compensate for his loss.

He explained that the situation experienced by money changers, especially those who work openly, undoubtedly makes them the most affected.

service
He believed that what happened served the Central Bank more, calling on everyone to follow the bank’s current rate, and that anyone who disagrees is making the same mistake.

Al-Tuwaiti confirmed that the Central Bank was not a partner in what happened, as the problem occurred on a public holiday and caused confusion for everyone.

He called on citizens to only spend their foreign currencies in proportion to their local currency needs.

Fragility
The recent turbulence in the foreign exchange market in Aden and the rest of the governorates is a clear indication of the fragility of control and the weakness of the mechanisms to protect savings from sudden fluctuations in exchange rates. Recent events have shown how cases of panic and unregulated speculation can affect the daily lives of citizens and the losses they leave behind.

responsible
Therefore, it is the responsibility of the Central Bank and relevant government agencies to establish strict mechanisms to control the foreign exchange market, ensure transparency of financial transactions and hold accountable any party that manipulates prices. Raising community awareness and teaching citizens how to manage financial fluctuations is also an essential part of protecting their personal and collective economies.

Be careful
The citizen remains the weakest link, and he must be careful and not get caught up in rumors or temporary panic, and limit himself to spending only what he needs, while following the official statements published by the Central Bank to ensure the protection of his money. At the same time, the competent authorities must always be ready to intervene quickly in the face of any financial crisis, so that such a crisis does not recur, endangering the stability of the market and the local economy.

Yemen