Yemen Faces Cash Crisis Despite Currency Gaining Strength

Yemen is experiencing a puzzling economic situation where the currency appears stable but people still can't get the cash they need for daily life. Exchange firms are limiting how much foreign currency people can convert, creating long lines and frustrated customers.

The country's currency, the riyal, has been on a roller coaster ride during Yemen's decade-long war. It crashed from about 1,200 riyals per dollar to around 2,400 in government areas, making everything more expensive and forcing families to skip meals.

Experts say the recent currency improvement comes from real money flowing in from outside Yemen, not just temporary fixes. However, this hasn't solved the cash distribution problem inside the country.

The situation is worse in areas controlled by Houthi rebels, where airstrikes on ports have made it harder to import goods. Banks have been moving their operations from the rebel-held capital Sana'a to the government-controlled city of Aden, adding to the financial chaos.

One economist called the cash shortage a "misdistribution" problem rather than a lack of money overall, meaning the cash exists but isn't reaching the people who need it.