According to a recent UN and Yemeni government report, wheat shipments through the Houthi-controlled Hodeidah port have dropped significantly as a result of Israeli airstrikes and attacks on foreign ships by Iran-backed Houthi rebels.
Wheat import volumes through Hodeidah significantly decreased by more than half (54%) month-on-month, partly due to the ongoing Red Sea attacks on transit ships, recent attacks on Hodeidah Port and delays in supplier contracts.
The report also revealed that local currency in government-controlled regions fell by 2% month on month, hitting a historic low of 1,904 Yemeni riyal per US dollar in August 2024.
According to a UN assessment on Yemen's market and commerce, the riyal in government-controlled regions has depreciated significantly in the previous two years, losing 26% of its value year on year and 38% versus the three-year average.
The riyal's weakness in those sectors is largely due to reduced foreign currency reserves, which have been depleted by banking sector disruptions.