Yemen’s northern and southern regions are struggling amid economic division, causing prices of essential goods to skyrocket. Residents face severe hardship even during the holy month of Ramadan.

Ongoing crisis stems from Yemen’s split governance — north controlled by Houthi rebels and the south under the internationally recognized government. This division has fueled inflation pushing basic necessities beyond citizens’ reach.

“I’ve lost 60-70% of my purchasing power. What I can buy now is only 30-40% of what I could afford before,” shared a struggling resident.

Following Houthi takeover of Sana’a in 2014 and ousting of President Abdrabbuh Mansur Hadi’s government, Yemen’s central bank split into two branches. Government-controlled branch recognized internationally has the authority to print new currency notes.

Houthi authorities criticized government’s currency policy calling it unjustified. Financial transactions have become chaotic — for instance, sending 100,000 Yemeni rials from Aden to Sana’a results in only 20,000 reaching its destination with remaining 80,000 deducted.

Similarly, transferring $100 from Aden faces multiple complications as most exchange services in Aden now refuse remittance in dollars or Saudi riyals.

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In January 2020 Houthi authorities banned use. And ownership of newly issued Yemeni rial notes creating a dual currency system and further disrupting exchange rates.

To ease crisis Yemen’s Bankers Association urged authorities to keep the banking sector free from political influence.