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How do Yemenis live amid the deterioration of the riyal and the decline in aid?
Economy| 11 February, 2025 - 7:48 AM
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Yemeni citizen Musa Mohammed Saleh was unable to provide the necessities of life for his children, as living conditions in his country deteriorated, job opportunities continued to be absent, and humanitarian aid declined, facing one of the worst humanitarian and economic crises in the world.
Speaking to Al Jazeera Net, the forty-year-old man, who supports five people and works for a daily wage in construction in Sana’a, which is under the control of the Houthi group, complained that work has become absent this year, saying: “I work only 3 or 4 days a month or two, unlike previous years when I used to get a job opportunity for a week or more a month, and I was able to provide some of the necessities of life.”
He added: "But now I can't afford anything simple. I now buy half or a quarter of a bag of flour."
Food crisis worsens
Saleh is one of millions of Yemenis struggling with poverty and unemployment, whether in areas controlled by the Yemeni government or the Houthi group, where the situation has become more miserable, driven by rising prices due to the collapse of the currency and the decline in the volume of humanitarian aid.
The United Nations World Food Programme revealed in a report issued last week that the food insecurity crisis in Yemen had worsened significantly by the end of December 2024.
The programme explained that "the crisis was more severe in areas under the control of the Yemeni government, as 67% of families suffer from severe food shortages, compared to 63% of families in areas under Houthi control."
Last January, the United Nations announced in a statement that 19.5 million people in Yemen need basic assistance and protection in 2025, which represents an increase of 1.3 million people compared to last year.
The statement said, "The humanitarian response plan for Yemen this year seeks to raise $2.5 billion to provide life-saving assistance to 10.5 million of the most vulnerable people, including food, clean water and health care."
This means that if the necessary funding is obtained and assistance is provided to those targeted during 2025, about 10 million people in need will not receive any assistance, which could lead to a further deterioration of their conditions as a result of poverty, unemployment and the absence of alternative options.
In 2024, donors provided $1.4 billion to the humanitarian appeal in Yemen, enabling some 200 relief agencies, two-thirds of which are local Yemeni organizations, to reach more than 8 million people, according to the UN statement.
Adding insult to injury was the US decision last month to impose sanctions on a commercial bank operating in Houthi-controlled areas, the first such move targeting a privately owned commercial bank.
These sanctions will negatively impact the economy and the dilapidated financial system in Yemen, as commercial banks are the last resort for remittances from abroad that Yemenis depend on, in addition to being channels for funds allocated for humanitarian aid to reach the country.
Returning to the citizen Saleh, he explained that “the residents of Sana’a and most of the governorates were receiving food aid and symbolic sums of money from relief organizations, and it was a basic source of support for them in addition to their meager work, but its interruption caused a major disaster, and many people are now living close to famine.”
He concluded his speech by saying: “I hope that I can secure a permanent livelihood for my family, from basic food items only.”
In turn, Ahmed Hassan, an employee at a private school in the city of Taiz (south of Sana’a), says, “The living conditions have become extremely miserable, and employees cannot buy the necessary needs for their families or pay the rent for the apartment, which is now in hard currency.”
In a statement to Al Jazeera Net, the forty-year-old man added, “I am currently living between two concerns: providing the basic necessities of life for my family of six, or paying the rent, especially since my salary is not equivalent to 90 Saudi riyals, and I receive it for 8 months of the year.”
Hassan complained about the "interruption of aid provided by international relief organizations," which negatively affected his living conditions.
He concludes his speech by saying: “I just want to secure my children in terms of education, nutrition and health, ..”.
Catastrophic living
The deterioration of living conditions in Yemen continues with an unprecedented decline in the currency, as the dollar price reached for the first time about 2,300 riyals in areas controlled by the government, while the dollar remains at around 535 riyals in areas controlled by the Houthis, which also suffer from economic stagnation accompanied by poverty, unemployment and the absence of regular salaries for employees.
On Thursday, the National Bloc of Political Parties and Components (which includes 22 political components) called on the government and the Presidential Leadership Council to take immediate action to stop the accelerating deterioration of basic services and the unprecedented economic collapse.
The bloc warned, in a statement, that "continued disregard for the suffering of citizens will lead to a dangerous social explosion, the consequences of which will be disastrous for everyone, including legitimacy and political forces, and no one will be immune from its repercussions."
In this context, economic expert Wahid Al-Foudai believes that “living appears catastrophic in areas controlled by the legitimate government, where purchasing power has eroded due to the collapse of the currency, and the prices of basic commodities have risen to astronomical levels, while relief supplies that were a lifeline for many families have declined.”
He added, in a comment to Al Jazeera Net, that "the citizen lives between the jaws of poverty and hunger, while the government is drowning in its impotence, and has nothing but promises."
Regarding the situation in the areas controlled by the Houthis, Al-Foudai believes that “the picture is no less bleak, as the economic recession is becoming more severe with the absence of humanitarian aid and restrictions imposed on commercial activity.”
The Yemeni researcher stressed that "the group's areas are witnessing a growing gap between rising prices and lack of income," noting that the market is monopolized by a narrow class, and poverty is spreading among the population, while crises continue without real solutions.
The Yemeni expert stresses that the only way out of this miserable situation "lies in breaking the economic stalemate through a comprehensive political agreement or military resolution, controlling monetary policy to curb the deterioration of the currency, taking strict measures against financial speculation, directing resources towards supporting local production instead of relying on imports, in addition to unifying aid channels and ensuring their fair distribution."
He recommended that "if corruption and manipulation are not ended, any solutions will remain mere temporary palliatives in the face of a growing catastrophe."
For his part, humanitarian activist Abdullah Al-Barakani, who previously worked in relief organizations and initiatives, says, “The population in the areas of the legitimate government is suffering from a sharp collapse of the local currency, high prices, and a decrease in relief supplies, which has caused them to lose their purchasing power and become unable to provide for their basic needs.”
He added to Al Jazeera Net that "citizens have begun to reduce their daily meals from three to two due to this miserable situation."
Regarding the situation in the areas controlled by the Houthis, Al-Barakani believes that “the humanitarian situation has become catastrophic due to the lack of cash liquidity among citizens, amid a scarcity of job opportunities, while employees’ salaries have not been paid for years, and recently relief aid has been cut off, and the import of basic materials has been banned.”
He continued, "In light of these conditions in all of Yemen, people's dreams have become reduced to providing flour and a little oil, while sugar, rice and other requirements have become secondary things."
Source: Al Jazeera
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