04:33
We continue with our series "Inside Yemen". The country is facing an acute humanitarian crisis after nearly three years of civil war, with more than 10,000 deaths. The turmoil has also had major impact on Yemen's economy. Our correspondent Natalie Carney reports on the situation.
NATALIE CARNEY ADEN, YEMEN "Yemen's economy has been flattened. The country's currency, the riyal, is plummeting while prices are rising, leaving millions of people struggling to buy the most basic commodities and needs. Education, medicine and even petrol have become out of reach for many Yemenis, worsening the desperate humanitarian crisis here. The situation has caused one aid agency to say that Yemen's economic collapse has the potential to kill even more Yemenis than the violence underlying it."
Many of Aden's markets are still bustling, even if many are simply "window shopping". The challenges seen here are the country's real problems says this 52-year-old vegetable stall owner.
VEGETABLE MARKET STALL OWNER "Everything changed in Yemen. We use to buy this for 1,500-2,000 riyals, but now it's 5,000-6,000-7,000 and many time we can't even find it. This is our situation. The rise in prices is cruel. We are fighting to survive."
Yemen's heavily depended on imports have all but stopped due to the country's insecurity and blockades of ports and roads, making even the most basic items hard to find and afford. Yemen's black market is thriving. Take petrol, while Yemen is a small oil producer, 60,000 liter shipments of imported oil that would come once a day have trickled down to once every 10 to 15 days.
NATALIE CARNEY ADEN, YEMEN "In August, Yemen exported its first shipment of newly produced crude oil since the war broke out in 2015, a milestone for the Arab world's poorest country. While Yemen's oil and minerals ministry is eager to restart oil production in the remaining oil blocks, many citizens are asking where is the oil for the country?!"
SALAH CHELEBI PETROL BUYER "It's very hard, very hard. There is no gas, it's all black market. Smuggled petrol is 8,600, but it's sold inside the stations as legal gas. The regular price should be sold at 6,600, but that is still expensive."
The country's currency, the riyal has lost more than three times its value over the last three years while more and more people hoard foreign currencies.
HISHAM AREF ABDU SEIF FOREIGN EXCHANGE MANAGER "When businessmen don't find foreign currency in the market they must buy it on the black market at higher prices. This leads to every price increasing and that affects the consumers and makes everyday life harder for those who have limited income like regular workers."
Some public sector employees don't even have that. Yemen's central bank is struggling to pay salaries, sparking protests across the south against the government who many blame for the country's deteriorating situation.
NASSER MARWAN ADEN RESIDENT "The government is corrupted. We cannot buy rice, we cannot buy sugar, we cannot buy oil or gas, nothing! The citizen does not have a salary, our livelihood is in God's hands. What shall he do? Steal?"
Saudi Arabia, who leads the coalition backing Yemeni government fighters against Houthis rebels, has just announced it will give the country 200 million usd. This follows a 2 billion U.S. dollars deposit back in January to try and help pick up its ailing economy, but some feel Riyadh should push Yemen's central bank for effective fiscal policies.
DR. MOSSAED AHMED AL QUTARBY FINANCE PROFESSOR, ADEN UNIVERSITY "All the indexes show that the situation is getting worse. The government has taken no big decisions and even the coalition is not playing a role. It's not what we were hoping for. The corruption, the coalition can put pressure on the government to remedy the situation."
Last year Yemen's central bank chose to float the local currency, which had been pegged at 250 riyals to the dollar. Earlier this month the riyal hit historic low of just under 800 to the USD. Aid agencies worry the already dire humanitarian situation across the country will only get worse if a solution isn't found soon to Yemen's freefalling currency.
NATALIE CARNEY ADEN, YEMEN "Yemen's economic woes are having devastating knock-on effects. The protests here in Aden have since gone quiet, but there is a worry loyalties across the country could change as families are forced to do whatever they can simply to survive. Natalie Carney, CGTN, Aden, Yemen."