Cash shortages grip Yemen despite currency stabilisation

The Yemeni government's efforts to stabilize the riyal have successfully reduced its value from 2,900 to 1,500 per US dollar by shutting down unauthorized exchange firms and centralizing currency controls. However, these measures have created a severe cash shortage, with banks and exchange firms limiting daily foreign currency conversions to as little as 50 Saudi riyals per person due to lack of local cash. The liquidity crisis has left many Yemenis unable to access their savings in hard currency, paralyzed businesses, and created a black market with unfavorable exchange rates.