As Yemen conflict drags on, Riyal falls to all an time low; 1703 for every US dollar

On Sunday, Yemen's currency rial/riyal fell to its lowest level against all other international currencies in years, as the long-running conflict deepens in the war-torn country.

In spite of the measures the central bank took to curb the devaluation, the riyal weakened sharply in the provinces controlled by the government, banking sources said.

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Recent exchange rates in the southern port city of Aden and other neighbouring areas have seen the Yemeni riyal traded at 1703 for every US dollar, marking the lowest exchange rate since the beginning of the civil war in 2015.

In response to Yemen's recent unprecedented devaluation, all banks and exchange stores shut down and a general strike was declared in Aden.

In a statement, the Yemeni banks remarked that "the suspension is not a solution, but rather a protest, to lead the country's government to move according to an economic system, including operating ports and exporting of oil and gas."

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According to Ahmad Bafaqih, the spokesman for Yemen's Central Bank, "there are many reasons that led to the decline in the exchange rate, the most important of which are the political and economic conditions that the country is going through."

Additionally, the scarcity of cash and the speculation of some money changers and traders contributed to the current devaluation.

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A year after Yemen's central bank was relocated to Aden, the government floated the national currency. Economic observers and analysts said the move wasn't well-studied.

The Yemeni economy is continuing to suffer after all exports were halted following a blockade on the country, which was part of a Saudi-led military intervention in March 2015.

Years later, Yemen's economy remains in recession, following a blockade that halted all exports. This was a part of the Saudi-led military intervention in March 2015.

(With inputs from agencies)