Yemen’s ongoing civil war has created a fractured economy now manifesting in an unprecedented divergence in gold prices between regions controlled by opposing factions. A single unit of gold can sell for more than three times the price in Aden compared to Sanaa, a disparity exceeding 1 million Yemeni rials and highlighting the contry’s collapsing monetary system. This extreme economic gap is impacting ordinary citizens and fueling illicit trade, as Yemen continues to grapple with the humanitarian and economic consequences of nearly a decade of conflict and a currency split between the Houthi-controlled north and the internationally-recognized government in the south.
Yemen’s fractured economy is facing an unprecedented crisis as the price of gold has diverged dramatically between areas controlled by different factions, with a staggering 305% price gap reported between Sanaa and Aden. A single unit of gold, known as a mithqal (approximately 3.3 grams), currently sells for 1,487,500 Yemeni rials in Aden, while the same unit is available for just 493,000 rials in Sanaa – a difference of a full 1 million rials.
The extreme disparity, representing a three-fold price difference, is causing significant hardship for citizens and fueling opportunistic trading. “I had to sell my gold for a third of its actual value to provide for my family, knowing that the same piece is worth many times more in Sanaa,” said Um Muhammad, a resident of Aden. Conversely, Aden-based trader Ahmed Al-Adani is capitalizing on the situation, making monthly trips to Sanaa to purchase gold and resell it in Aden, reportedly earning profits of up to 300%. Shoppers in Aden’s gold markets are reportedly stunned by the price differences, with some struggling to believe the same precious metal can command such vastly different values.
قد يعجبك أيضا :
The root cause of this economic anomaly lies in the ongoing Yemeni civil war and the resulting fragmentation of control over different regions. This has led to a split in the national currency and extreme volatility in exchange rates. “This isn’t just a price difference; it’s a complete collapse of the monetary system – the worst economic crisis since the unification of Yemen in 1990,” stated Dr. Yahya Al-Sarari, an economic expert. Liquidity shortages and trade restrictions between regions have exacerbated the problem, particularly with different factions controlling the two major cities.
The impact is being acutely felt by ordinary Yemenis, who are seeking alternatives to gold as a store of value, with some turning to foreign currencies as a safer haven. “I can’t believe my gold is worth three times more in Aden, but I feel sorry for my family there,” said Fatima Al-Houthi, a resident of Sanaa. Experts are warning of a potential mass exodus of capital into foreign currencies and a complete collapse of the gold market in Aden. However, some see the situation as a lucrative investment opportunity for those able to navigate the security challenges and transport gold safely.
قد يعجبك أيضا :
The 1 million rial difference in the price of gold is not merely a statistic, but a desperate plea from a collapsing economy. The situation raises the critical question of whether Yemen is heading towards a complete economic division between its different regions. International organizations are being urged to intervene immediately to prevent further deterioration. When will economic justice be restored to a unified Yemen, and when will the suffering of the Yemeni people, forced to bear the cost of a conflict they did not choose, come to an end?
