Yemen Faces Extreme Economic Disparity as Gold Prices Diverge by Nearly 200%
Sanaa/Aden – A staggering price difference in gold - reaching as high as 199% – is highlighting the deepening economic crisis in Yemen, with citizens in the capital, Sanaa, paying dramatically more for the precious metal than those in Aden. A gram of 21-carat gold currently costs 176,000 Yemeni riyals in Sanaa, while the same amount is available for 61,000 riyals in Aden. The disparity underscores a fractured economy and the collapse of a unified national market.
The widening gap, first observed in recent days, is forcing families to reassess savings and fueling a risky trade in gold smuggling between the two cities. “This is not just a difference in prices, it is a collapse of the concept of one state,” declared Ahmed Al-Tajer, reflecting the widespread shock and concern. The divergence stems from the existence of two central banks, differing currencies, and economic authorities operating in the war-torn nation as 2015.
The situation is a stark illustration of Yemen’s economic wounds inflicted by years of conflict. Experts warn the price gap foreshadows a broader economic collapse. Dr. Salem, an economic expert, described the situation as “very serious.” The discrepancy creates a perverse incentive: investment is favored in Aden, while speculation is discouraged in Sanaa, leaving ordinary citizens vulnerable to rapidly eroding savings.
The economic division mirrors the political one, drawing parallels to the period of a divided Germany and the Berlin Wall. As the price gap continues, the future of Yemen’s economic unity remains uncertain, with time rapidly running out to address the crisis.
