The recovery of the riyal hits exchange companies and expectations that the dollar will continue to fall below 700 riyals
English - Saturday 12 December 2020 الساعة 03:30 pm
Aden, NewsYemen, Exclusive:
The price of the dollar declined in Friday / Saturday night trading against the local currency, "the riyal", about 80 riyals, to record 860 riyals, after it crossed the threshold of 940 riyals, last Monday, and the price of the Saudi riyal fell to 227 riyals, a decrease of ten riyals from its price on December 8.
The recovery of the riyal was prompted by the announcement of the breakthrough in the Riyadh agreement, and the exchange companies' offering of their dollars and Saudi riyals for sale, which continued to buy and not sell during the past two weeks, which caused panic in the exchange market.
Financial experts told "NewsYemen" that the price of the dollar fell against the local currency, the riyal, during the past hours, due to the breakthrough in the Riyadh agreement between the government and the Transitional Council and the cessation of confrontations, which restored reassurance to the population.
They added that after yesterday's announcement of the agreement of the two parties to the Riyadh Interim Agreement and the government to implement the military and security part of the Riyadh Agreement, which began on Friday morning, money changers had to offer their dollars and Saudi riyals for sale and stop buying.
Traders stopped buying foreign currencies, the dollar and the Saudi riyal, in anticipation of a further decline, and the arrival of a new Saudi deposit to the Central Bank, which Saudi Arabia linked to the implementation of the Riyadh Agreement.
The exchange companies and shops have intensified their purchases of the dollar and the Saudi riyal, during the past two weeks, with the aim of making profits, with their expectations of the continuing faltering crisis of the announcement of the formation of the government, and the rise of the dollar price.
Banking experts expected the dollar’s price to continue to fall below 700 riyals in the coming days, which is its natural price, with the global drop in oil prices and the decline in the size of the dollar’s foreign exchange requirements for oil derivatives traders.
The breakthrough in the Riyadh agreement and the setting of a week to announce the formation of the government emanating from the riyal agreement prompted exchange companies to offer their dollars and Saudi riyals for sale at the same time to the decline of the dollar price due to the size of the foreign exchange exhibition and the lingering of traders.
Bankers confirm that exchange companies that bought large sums of Saudi riyals and the US dollar at prices that exceeded 235 riyals for the Saudi riyal and 935 for the dollar, will incur great losses as the riyal's recovery continues.
