Yemen: Wheat imports through Hodeidah Port decline 54% after Israeli strikes

A recent report by the United Nations and the Yemeni government revealed a substantial decline in wheat imports through the Houthi-controlled Hodeidah port, following Israeli airstrikes and attacks by the Iran-backed Houthi militias on international shipping. The report also showed that local currency in government-controlled areas sustained declining trend against the US Dollar, decreasing by 2% month-on-month, reaching a historic low of 1,904 Yemeni rial per 1 US dollar in August 2024. The UN report on Yemen market and trade said that over the last two years, the rial in government-controlled areas has substantially depreciated, losing 26% of its value year-on-year and 38% against the 3-year average. The weakening of the rial in those areas is primarily because of depleted foreign exchange reserves, which recently deepened by the banking sector disruptions. Meanwhile, stringent exchange rate regulations in Houthi-held areas have helped maintain exchange rate stability despite US ...