Yemeni riyal in free fall again amid political deadlock

The riyal was 215 to the dollar when the Houthis placed the Yemeni President Abed Rabbo Mansour Hadi under house arrest in early 2019. (Shutterstock)
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Updated 30 May 2021
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Yemeni riyal in free fall again amid political deadlock

  • Trades at 930 to dollar in government-controlled areas, plunging from 900 riyals 2 weeks ago
  • Experts link the current fall of the riyal to the outcome of UN-brokered peace efforts

AL-MUKALLA: Yemen’s riyal hit a new record low on the weekend amid deadlocked diplomatic efforts to end the war and rising tensions between the Yemeni government and southern separatists in Aden. 

The riyal traded at 930 to the dollar on Saturday in the government-controlled areas, plunging from 900 riyals a couple of weeks ago. 

The riyal was 215 to the dollar when the Houthis placed the Yemeni President Abed Rabbo Mansour Hadi under house arrest in early 2019, sparking the current conflict.

When the new unity government, formed under the Riyadh Agreement in December, returned to Aden as troops withdrew from Abyan, the Yemeni riyal surged to 720 against the US dollar, recovering almost 20 percent of its value. 

Experts link the current fall of the riyal to the outcome of UN-brokered peace efforts, renewed hostilities between the Yemeni government and the separatist Southern Transitional Council (STC), and the government’s failure to resume oil exports and collecting revenues from state bodies.

“The fall of the riyal is due to the economic and political instability in Yemen,” Mustafa Nasr, director of the Economic Media Center, told Arab News on Saturday. 

Politically, the UN Yemen envoy Martin Griffiths’ latest diplomatic shuttle between Riyadh and Muscat yielded no fruit as warring factions rejected his peace initiative, known as the Joint Declaration, that proposes putting into place a nationwide truce. 

The Houthis are still pressing ahead with their deadly offensive on the central city of Marib despite international condemnations and appeals. 

In Aden, the interim capital of Yemen, the internationally recognized government has not returned to the city for more than two months amid reports about renewed tension with the STC. 

The STC on Saturday appointed Gen. Shalal Ali-Shayae as the commander of counterterrorism forces in Aden, fueling tension with the government whose supporters accused the separatists of violating the Riyadh Agreement. 

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The STC on Saturday appointed Gen. Shalal Ali-Shayae as the commander of counterterrorism forces in Aden, fueling tension with the government whose supporters accused the separatists of violating the Riyadh Agreement.

Shayae, former security chief of Aden and a senior separatist figure, was appointed in December as a military attache at the Yemen Embassy in the UAE. 

“The implantation of the Riyadh Agreement (in December) sent positive signals about new economic policies and support to the economy,” Nasr said, adding that the Yemeni riyal plunged again after the government did not remain in Aden or apply reforms to boost revenues and exports. 

“Many negative things have happened recently. The crisis in Aden returned. The government neither improved revenues that generate hard currencies nor created a mechanism for covering exports of goods and fuel. To pay public servants, the government printed millions of riyals without coverage,” he said. 

During previous rounds of devaluation of the national currency, the Yemeni government replaced the central bank governors, shut down exchange firms to put an end to currency speculation, and provided local fuel and goods traders with the dollar. 

The government also floated the riyal to bridge the gap between the official rate and that of the black market and relocated the central bank office from Sanaa to Aden. 

The Yemeni government blamed the Houthis for banning the use of new banknotes printed by the Yemeni government in Aden and refusing to deposit revenues from Hodeidah seaports and tax into the central bank in Aden. 

Economists argue that the Yemeni riyal would keep falling against the dollar as long as the Yemeni government remains outside the country.

The depreciation of the riyal has led to an expected surge in the price of foods and fuel and sparked protests in several Yemeni cities. 

Hundreds of people took to the streets of Aden and Taiz to voice rage over the collapse of the Yemeni currency and the subsequent increase in the price of food and goods. 

“My salary has lost more than 20 percent of its value due to the devaluation of the riyal. My relatives in Saudi Arabia donate to me to keep me afloat since my salary can’t cover my expenses,” Abu Abdullah, a government employee, told Arab News.


Greek defense team says 9 Egyptians accused of causing deadly shipwreck were misidentified as crew

Updated 8 sec ago
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Greek defense team says 9 Egyptians accused of causing deadly shipwreck were misidentified as crew

The nine are due to go on trial in Kalamata on May 21 on a series of charges, including migrant smuggling, participation in a criminal organization and causing a deadly shipwreck
They face multiple life sentences if convicted

ATHENS: The legal defense team for nine Egyptian men due to go on trial in southern Greece next week accused of causing one of the Mediterranean’s deadliest shipwrecks said Thursday they will argue that Greece has no jurisdiction in the case, and insisted their clients were innocent survivors who have been unjustly prosecuted.
The nine, whose ages range from early 20s to early 40s, are due to go on trial in the southern city of Kalamata on May 21 on a series of charges, including migrant smuggling, participation in a criminal organization and causing a deadly shipwreck. They face multiple life sentences if convicted.
The Adriana, an overcrowded fishing trawler, had been sailing from Libya to Italy with hundreds of asylum-seekers on board when it sank on June 14 in international waters off the southwestern coast of Greece.
The exact number of people on board has never been established, but estimates range from around 500 to more than 700. Only 104 people survived — all men and boys from Syria, Egypt, Pakistan and two Palestinians — and about 80 bodies were recovered. The vessel sank in one of the Mediterranean’s deepest areas, making recovery efforts all but impossible.
The Greek lawyers who make up the defense team spoke during a news conference in Athens on Thursday. They maintained their clients’ innocence, saying all nine defendants had been paying passengers who had been misidentified as crew members by other survivors who gave testimonies under duress just hours after having been rescued.
The nine “are random people, smuggled people who paid the same amounts as all the others to take this trip to Italy aiming for a better life, and they are accused of being part of the smuggling team,” lawyer and defense team member Vicky Aggelidou said.
Dimitris Choulis, another lawyer and member of the legal team, said that Greek authorities named the defendants as crew members following testimonies by nine other survivors who identified them for having done things as simple as handing bottles of water or pieces of fruit to other passengers.
“For nearly a year now, nine people have been in prison without knowing what they are in prison for,” Choulis said.
“For me, it is very sad to visit and see people in prison who do not understand why they are there,” he added.
While the Adriana was sailing in international waters, the area was within Greece’s search and rescue zone of responsibility. Greece’s coast guard had been shadowing the vessel for a full day without attempting a rescue of those on board. A patrol boat and at least two merchant ships were in the vicinity when the trawler capsized and sank.
In the aftermath of the sinking, some survivors said the coast guard had been attempting to tow the boat when it sank, and rights activists have accused Greek authorities of triggering the shipwreck while attempting to tow the boat out of Greece’s zone of responsibility.
Greek authorities have rejected accusations of triggering the shipwreck and have insisted the trawler’s crew members had refused to accept help from the nearby merchant ships and from the Greek coast guard.
A separate investigation being carried out by Greece’s naval court hasn’t yet reached any conclusion, and the defense team hasn’t been given any access to any part of it.
The Egyptians’ defense team also argues that because the shipwreck occurred in international waters, Greek courts don’t have jurisdiction to try the case, and the defense will move to have the case dismissed on those grounds when the trial opens in Kalamata next week.
Greece lies along one of the most popular routes into the European Union for people fleeing war and poverty in the Middle East, Africa and Asia. While most of those cross into the country’s eastern Aegean Sea islands from the nearby Turkish coast, others try to skirt Greece altogether and head from north Africa to Italy across the longer and more dangerous Mediterranean route.
On Thursday, Greece’s coast guard said that 42 people had been rescued and another three were believed to be missing after a boat carrying migrants sent out a distress call while sailing south of the Greek island of Crete.
Officials said they were alerted by the Italian coast guard overnight about a boat in distress 27 nautical miles (31 miles or 50 kilometers) south of Crete. Greece’s coast guard said that 40 people were rescued by nearby ships, and another two were rescued by a Greek navy helicopter.
A search and rescue operation was underway for three people reported by survivors as still missing. It wasn’t immediately clear what kind of vessel the passengers had been on, or why the boat sent out a distress call.

Turkiye convicts former pro-Kurdish party officials over Kobani protests

Updated 7 min 27 sec ago
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Turkiye convicts former pro-Kurdish party officials over Kobani protests

  • Yuksekdag was sentenced to more than 30 years in prison
  • The court has not yet ruled on the HDP co-leader Selahattin Demirtas

ANKARA: A Turkish court convicted former leading officials from the pro-Kurdish HDP party, including co-leader Figen Yuksekdag, on Thursday for instigating 2014 protests triggered by a Daesh attack on the Syrian Kurdish town of Kobani.
The verdict was likely to fuel political tensions in Turkiye around the Peoples’ Democratic Party (HDP), which is facing potential closure in a separate court case and has been succeeded in parliament by another pro-Kurdish party.
In total, Yuksekdag was sentenced to more than 30 years in prison. The court has not yet ruled on the HDP co-leader Selahattin Demirtas.
Thirty-seven people died in the 2014 protests, which were triggered by accusations that Turkiye’s army stood by as the ultra-hard-line Daesh militants besieged Kobani, a Syrian border town in plain view of Turkiye.
Those convicted were among 108 defendants, including senior HDP figures, charged with 29 offenses including homicide and harming the unity of the Turkish state. The HDP denied the charges.


Israel says more troops to ‘enter Rafah’ as operations intensify

Updated 43 min 11 sec ago
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Israel says more troops to ‘enter Rafah’ as operations intensify

  • Israeli forces took control earlier in May of the Gaza side of the Rafah crossing with Egypt
  • 600,000 people have fled Rafah since military operations intensified: UNRWA

JERUSALEM: Israel’s Defense Minister Yoav Gallant said that more troops would “enter Rafah” as military operations intensify in Gaza’s far-southern city, in remarks issued by his office Thursday.
The operation “will continue as additional forces will enter” the Rafah area, Gallant said, adding that “several tunnels in the area have been destroyed by our troops... this activity will intensify.”
“Hundreds of [terror] targets have already been struck, and our forces are manoeuvring in the area,” he said according to a statement released by his office after he visited Rafah the previous day.
Israeli forces took control earlier in May of the Gaza side of the Rafah crossing with Egypt, in a push launched in defiance of US warnings that around 1.4 million civilians sheltering there could be caught in the crossfire.
The United Nations agency for Palestinian refugees, UNRWA, has said “600,000 people have fled Rafah since military operations intensified” in Rafah.
Israeli Prime Minister Benjamin Netanyahu has vowed to launch a full-scale ground operation in Rafah in a bid to dismantle the remaining battalions of Hamas.
Gallant said that the military’s offensive against Hamas had hit the militant group hard.
“Hamas is not an organization that can reorganize, it does not have reserve troops, it has no supply stocks and no ability to treat the terrorists that we target,” he said.
“The result is that we are wearing Hamas down.”
However, Israel’s top ally the United States has warned that it had not seen any credible Israeli plan to protect civilians in Rafah.
Secretary of State Antony Blinken told NBC on Sunday that “Israel’s on the trajectory, potentially, to inherit an insurgency with many armed Hamas left or, if it leaves, a vacuum filled by chaos, filled by anarchy and probably refilled by Hamas.”
The Gaza war broke out after Hamas’s unprecedented October 7 attack on southern Israel which resulted in the deaths of more than 1,170 people, mostly civilians, according to an AFP tally based on Israeli official figures.
Israel’s military retaliation has killed at least 35,272 people, mostly civilians, according to the health ministry in Hamas-ruled Gaza.


Tunisia blasts foreign criticism of arrests as ‘interference’

Updated 16 May 2024
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Tunisia blasts foreign criticism of arrests as ‘interference’

  • Several prominent Tunisian pundits, journalists, lawyers and civil society figures have been arrested in recent days
  • Late Saturday, masked police raided the Tunisian bar association headquarters and forcibly arrested lawyer Sonia Dahmani

TUNIS: Tunisian President Kais Saied on Thursday denounced foreign “interference” following international criticism of a recent flurry of arrests of political commentators, lawyers and journalists in the North African country.
Saied, who in 2021 orchestrated a sweeping power grab, ordered the foreign ministry to summon diplomats and “inform them that Tunisia is an independent state.”
Speaking during a televised meeting, the president told Mounir Ben Rjiba, state secretary to the foreign ministry, to “summon as soon as possible the ambassadors of a number of countries,” without specifying which ones.
Ben Rjiba was asked to “strongly object to them that what they are doing is a blatant interference in our internal affairs.”
“Inform them that Tunisia is an independent state that adheres to its sovereignty,” Saied added.
“We didn’t interfere in their affairs when they arrested protesters... who denounced the war of genocide against the Palestinian people,” he added, referring to demonstrations on university campuses in the United States and elsewhere over the Israel-Hamas war.
Several prominent Tunisian pundits, journalists, lawyers and civil society figures have been arrested in recent days, many of whom over a decree that punishes “spreading false information” with up to five years in prison.
Since Decree 54 came into force with Saied’s ratification in 2022, more than 60 journalists, lawyers and opposition figures have been prosecuted under it, according to the National Union of Tunisian Journalists.
Late Saturday, masked police raided the Tunisian bar association headquarters and forcibly arrested lawyer Sonia Dahmani over critical comments she had made on television.
On Monday police entered the bar association again and arrested Mehdi Zagrouba, another lawyer, following a physical altercation with officers. Zagrouba was subsequently hospitalized.
The arrests have sparked Western condemnation.
The European Union on Tuesday expressed concern that Tunisian authorities were cracking down on dissenting voices.
France denounced “arrests, in particular of journalists and members of (non-governmental) associations,” while the United States said they were “in contradiction” with “the universal rights explicitly guaranteed by the Tunisian Constitution.”
The media union said Wednesday that Decree 54 was “a deliberate attack on the essence of press freedom and a vain attempt to intimidate journalists and media employees and sabotage public debate.”
NGOs have decried a rollback of freedoms in Tunisia since Saied — who was elected democratically in October 2019 with a five-year mandate — began ruling by decree following the July 2021 power grab.


Egypt rejects Israeli plans for Rafah crossing, sources say

Updated 16 May 2024
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Egypt rejects Israeli plans for Rafah crossing, sources say

  • An Israeli official said a delegation traveled to Egypt amid rising tension between the two countries

CAIRO: Egypt has rejected an Israeli proposal for the two countries to coordinate to re-open the Rafah crossing between Egypt’s Sinai Peninsula and the Gaza Strip, and to manage its future operation, two Egyptian security sources said.
Officials from Israeli security service Shin Bet presented the plan on a visit to Cairo on Wednesday, amid rising tension between the two countries following Israel’s military advance last week into Rafah, where hundreds of thousands of Palestinians displaced by war have been sheltering.
The Rafah crossing has been a main conduit for humanitarian aid entering Gaza, and an exit point for medical evacuees from the territory, where a humanitarian crisis has deepened and some people are at risk of famine. Israel took operational control of the crossing and has said it will not compromise on preventing Hamas having any future role there.
The Israeli proposal included a mechanism for how to manage the crossing after an Israeli withdrawal, the security sources said. Egypt insists the crossing should be managed only by Palestinian authorities, they added.
An Israeli official who requested anonymity said the delegation traveled to Egypt “mainly to discuss matters around Rafah, given recent developments,” but declined to elaborate.
Egypt’s foreign press office did not immediately respond to a request for comment.
Egypt and Israel have a long-standing peace treaty and security cooperation, but the relationship has come under strain during the Gaza war, especially since the Israeli advance around Rafah.
The two countries traded blame this week for the border crossing closure and resulting blockage of humanitarian relief.
Egypt says Rafah’s closure is due solely to the Israeli military operation. It has warned repeatedly that Israel’s offensive aims to empty out Gaza by pushing Palestinians into Egypt.
Israeli government spokesperson David Mencer said on Wednesday that Egypt had rejected an Israeli request to open Rafah to Gazan civilians who wish to flee.
The Israeli delegation also discussed stalled negotiations for a ceasefire and hostage release in Gaza during their Cairo visit, but did not convey any new messages, the Egyptian sources said. Egypt has been a mediator in the talks, along with Qatar and the United States.
Israel’s Gaza offensive has killed more than 35,000 Palestinians, according to Gaza health officials, with at least 82 killed on Tuesday in the highest single-day toll for weeks.
Hamas-led gunmen killed some 1,200 people and abducted 253 in their Oct. 7 raid into Israel, according to Israeli tallies.