Fears of economic collapse are causing Yemeni citizens to withdraw their US dollar savings from banks and keep the dollars at home. Yemen is facing economic collapse for several reasons:

• The political chaos of the country having two capitals after the Houthi seizure of Sanaa is preventing many businesses from operating.
• The fighting has reduced oil exports, Yemen’s main source of dollars. At the same time the price of oil has been falling, so even less money is coming in.
• Saudi Arabia used to provide aid to the Sunni-led government of Abd-Rabbu Mansour Hadi, but that aid was cut off when the new Shia-led Houthi government took over.

It is possible that the Sanaa government will soon be unable to pay salaries within a few weeks. The economic collapse represents a recruiting opportunity for Al-Qaeda in the Arabian Peninsula .(AQAP). Widespread protests and riots, as well as terrorist acts by AQAP, are expected to increase