The repercussions of the Houthi ban on the currency curb the demand for goods by 60%

English - الثلاثاء 17 مايو 2022 الساعة 05:14 م
Aden, NewsYemen, special:

Wholesale and retail traders in Taiz Governorate, in the southern eastern districts under the control of the Houthi militia, confirmed that the market is suffering from a major stagnation, in light of the Houthi militia's continued ban on dealing in the local currency from the new edition.

A wholesaler of building materials in the Khadirel district told "NewsYmen" that since the Houthi militia banned dealing in the local currency from the new edition, the demand for purchasing goods has decreased by 60 percent.

He added, that the Houthi militia permanently banned dealing with the new local currency in the district of Khadir, the commercial center for five districts, in mid-2021, after a year and a half of prohibiting dealing with the new edition in other governorates, which was disastrous for traders and consumers.

He explained that the decline in demand for goods, especially building materials, due to the lack of income and the difference in the exchange rate of the dollar and the Saudi riyal when converted into currency from the old and new edition, at a time when prices do not differ much when buying the old or new edition.

The expatriates in the six districts: Khadir, Sami, Haifan, Mawiyah and Sabr Al-Mawadim were affected, as a result of being denied the benefit of the exchange difference when dealing with the currency of the new edition.

Markets in Houthi militia-controlled areas suffer from stagnation, with citizens reluctance to buy, and prices rising, which reflects the continuing difficulties of living for large segments of the population, especially in light of the cessation of salaries, the depletion of savings, the scarcity of income and the collapse of purchasing power over the years of war.

The spending of Yemenis on purchasing food, and their annual household needs, fell sharply, as the war sparked by the Houthi militia and its hostile practices caused extensive damage to the incomes of the population and the economy.

 The Houthi militia suspended the salaries of state employees for years, and basic social services, which caused the destruction of many family confrontation mechanisms to deal with the economic shock, and austerity was the only option for the majority of the population.

According to WFP reports, more than 40% of families have lost their primary source of income and are finding it increasingly difficult to purchase minimum food needs, and more than a third of families in Yemen have insufficient food consumption.

Economists assert that the earning capacity of households has been stifled, families have depleted their savings to make up for lost income, and with the price of basic foodstuffs rising beyond the reach of many, the majority of Yemeni families have been unable to buy food, exacerbating malnutrition among children.

The war, which the Houthi militia is waging on Yemen and Yemenis, has entered its eighth year, has severely disrupted livelihoods and reduced income, food prices remain high and access to food is insufficient for many families.

The erosion of purchasing power in Yemen is the biggest contributor to the severe hunger facing many Yemenis, with salaries suspended and labor markets disrupted, and many Yemeni families are now unable to afford their basic needs.

Since 2015, malnutrition has been a leading cause of death, with malnutrition making infectious diseases more deadly by compromising the immune system and increasing susceptibility to infection, the World Health Organization reports.