Yemen launches price control as currency rebounds to 1,800 rials per dollar

Alsharq Tribune-AFP 

Yemen's rial surged to 1,800 per U.S. dollar in government-held areas Saturday, rebounding from nearly 2,900 two weeks ago, prompting authorities to launch nationwide price controls.

Banking sources in Aden confirmed the currency recovery, the strongest in months, sparking citizen hopes for lower food costs.

The Aden-based Central Bank of Yemen drove the turnaround by revoking licenses of 24 exchange firms accused of rate manipulation and tightening oversight. Yemeni Prime Minister Salem bin Buraik then ordered the Ministry of Industry and Trade to form inspection teams across government-controlled provinces to enforce commodity price controls.

"Any improvement in the currency exchange rate must be accompanied by a corresponding decrease in the prices of basic commodities, especially those imported by major traders and suppliers in foreign currencies," bin Buraik was quoted as saying by the state-run Saba news agency, warning of punitive action against traders failing to adjust prices.

Yemen's years-long civil war has triggered what the UN deems one of the world's worst humanitarian crises. The currency collapse had previously fueled months of inflation, deepening public hardship.