Hadi’s govt continues to destroy economy by printing new amounts of currency

Despite warnings of what could be caused by printing of more Yemeni currency to the collapsed Yemeni economy due to the low Yemeni riyal exchange rate against foreign currencies, Hadi’s government continues to print more of the Yemeni currency without covering and flood the market with it.

Russia has started printing new banknotes for Hadi’s government, according to a statement issued Wednesday by the Russian Foreign Ministry spokeswoman, Maria Zakharova, who confirmed that the printing of the currency comes under the contract signed with Hadi’s government in 2017.

Economic experts have warned of the measures taken by Hadi’s government through printing more currency and pumping them into the local market, which could cause devastating effects on the Yemeni economy and the decline of Yemeni riyal to its lowest levels.

According to observers, printing new amounts of the national currency will double the economic hardship in Yemen, which was caused by Hadi government’s printing of more than two trillion Yemeni riyals during the past years without cover, and that what brought the price of the dollar to more than 700 Yemeni riyals compared to 370 riyals in 2015.

It is noteworthy that the former US ambassador to Yemen Matthew Tueller threatened Sanaa delegation during the Kuwaiti consultations in 2016 with taking punitive economic measures that would make the Yemeni riyal not equal to the ink printed on it, to start from that time the systematic targeting of the Yemeni currency in the context of the economic war waged by Saudi-led coalition on Yemen.

YPA