Amid escalating economic conflict in Yemen, the value of the Yemeni rial in government‑controlled Aden has tumbled to unprecedented depths—trading at around 2,760 per US dollar. This collapse has ravaged the purchasing power of families throughout southern Yemen, making basic food items prohibitively expensive and deepening the humanitarian crisis.
Since the civil war intensified in 2015, the rial has steadily lost value. Once trading at roughly 215 to the dollar, it has now depreciated by nearly 1,200%. In areas under the internationally recognized government, such as Aden, this slide has accelerated sharply in recent months.
Negotiations between Aden’s Central Bank (aligned with the Presidential Leadership Council) and the Houthi‑controlled monetary authorities in Sana’a have failed to produce a unified monetary policy. Instead, two parallel systems exist—one with a relatively stable exchange rate in Houthi areas (around 530 rials/USD), and a collapsing rate in Aden and the south.
The absence of unified financial regulation has turned currency management into an instrument of politics. In Aden, the printing of new rials—driven by liquidity shortages and delays in salary payments—has undermined confidence and accelerated inflation :contentReference[oaicite:3]{index=3}. Meanwhile, the Houthis have banned circulation of Aden‑issued banknotes in Sana’a, reinforcing the monetary divergence.
The broader context—spillover from regional conflict including tensions between Iran and Israel—puts additional pressure on remittances, trade, foreign reserves, and oil exports, further weakening the rasa in Aden.
With more than 90% of Yemen’s food imported, devaluation has a direct and brutal impact on food affordability. The Chamber of Commerce in Aden has warned of critical shortages as traders struggle to obtain foreign currency for imports.
Across southern governorates, rice, wheat, sugar, oil and other staples have spiked in price. In Taiz, a 50‑kg sack of flour now exceeds 59,000 rials, up from around 47,000 just weeks ago. Rice and sugar costs have risen similarly, forcing households to drastically cut consumption.
FAO reporting has detailed that the rial lost roughly 25–38% of its value in government‑held areas within a year, pushing a minimum food basket beyond the financial reach of most citizens. Food inflation ranged between 7–28% year‑on‑year, with fuel costs also climbing sharply.
With soaring prices and stalled incomes, millions face hunger. The UN and WFP report that over 17 million Yemenis now endure acute food insecurity, with malnutrition rising from 21% in early 2024 to 33% by early 2025.
Refugee families in southern camps, especially around Al‑Mukalla, are surviving on minimal rations—bread, tea, tomato paste—and often skip meals to feed children. Aid cuts and reduced remittances have compounded their plight.
Displaced residents report subsisting on day labor and scrap collection, earning less than $2 a day—just enough for the barest essentials. Even WFP’s reduced food packages no longer sustain households beyond a few days.
In response to the crisis, authorities in Aden have introduced a 100‑day emergency economic plan, including measures aimed at halting further currency devaluation and ensuring public sector salary coverage.
A cabinet reshuffle elevated Salem bin Brik to prime minister. Experts hope a professional economic rescue plan—restoring oil exports, unifying monetary policy, reforming subsidies, and fighting corruption—can slow the collapse and protect citizens.
The FAO, WFP, and humanitarian organizations stress the urgency of external support to prevent mass starvation: financial aid, food assistance, structural reform assistance, and de-escalation of monetary fragmentation remain critical.
The unprecedented depreciation of the Yemeni rial in Aden is both a symptom and driver of economic warfare that now threatens widespread food deprivation. With one of the world’s worst humanitarian emergencies unfolding, currency collapse has undermined food access, incomes, and survival. Absent immediate policy coordination, structural reform, and renewed international aid, Yemen risks slipping further into famine.
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