Aden – The Yemeni rial has witnessed a dramatic rebound in value across government-held areas, marking its strongest performance in over a year and sparking cautious optimism among citizens and financial observers.

On Saturday evening, the US dollar was trading at approximately 1,577 rials for purchase and 1,615 for sale in Marib and Aden—down from highs exceeding 2,800 rials earlier this month. The Saudi riyal also dropped to 415 for purchase and 420 for sale, compared to previous rates of 425 and 428 respectively.

This unexpected surge follows a series of aggressive interventions by the Central Bank of Yemen, including the revocation of licenses for dozens of unregulated exchange companies accused of market manipulation. The bank also introduced tighter controls on import financing and coordinated with commercial banks to stabilize the currency market.

Officials say the improvement reflects a broader effort to restore public confidence and curb inflation, especially amid widespread protests in Hadramout over deteriorating services. The Central Bank has also announced plans to launch a digital payment system with international support, aiming to modernize financial infrastructure and reduce reliance on cash transactions.

Despite the positive momentum, experts remain skeptical about the sustainability of the rial’s recovery. “The appreciation appears politically driven rather than rooted in real economic growth,” said Dr. Mohammed Jamal Al-Shoaibi, professor of finance at the University of Aden. He noted that fuel prices have only modestly declined, suggesting that the market has yet to fully respond to the currency shift.

No significant foreign deposits or Gulf financial support have been reported in recent months, raising questions about the long-term viability of the current exchange rates. Nonetheless, the rial’s rebound has offered a rare moment of relief for Yemenis grappling with years of economic instability and conflict.