Will Yemen's new Cabinet revive economy?
Although the road to sustainable economic recovery is teeming with several obstacles at this critical time, the new Yemeni Cabinet that recently arrived in Aden asserts that it will overcome all hurdles and deal with this challenging situation.
The Dec. 18 declaration of the new Yemeni Cabinet sparked a wave of hope among Yemenis and signaled a significant stride toward peace, at least, in Yemen's south. Unexpectedly, the sense of optimism plummeted when three blasts hit Aden International Airport as the new Yemeni Cabinet arrived from Riyadh on Dec. 30. The southern separatists and the UN-recognized government signed a Saudi-sponsored peace deal in November 2019 to form a unity government.
The explosions left more than 20 people dead and over 100 wounded; no one has claimed responsibility so far. The attack was a powerful alert that challenges facing the new Yemeni government are formidable.
At present, the government is in Aden amid tight security measures. It has a variety of problems to address; the economic collapse is among the urgent issues that are of grave concern to all Yemenis.
Six years of war have culminated in dire economic conditions across Yemen. Millions of people suffer from food insecurity and famine is looming. The conflict has taken a heavy toll on the economy as the national currency has kept losing its value against the dollar. Prior to the war breakout in 2015, one US dollar was equivalent to 240 Yemeni rials. Lately, the Yemeni rial fell to as low as 900 per dollar. Simultaneously, the prices of food commodities soar nonstop amid rare job opportunities and unpaid salaries.
