Home / Others / Saudi Arabia has granted Yemen $ 2 billion to strengthen its currency

Saudi Arabia has granted Yemen $ 2 billion to strengthen its currency





  Saudi Arabia King Salman bin Abdul-Aziz Al Saud
Saudi king Salman bin
Abdul-Aziz Al Saud

AP


  • King Salman of Saudi Arabia ordered a deposit of $ 2
    billion to be paid in the central bank of Yemen.
  • Money, which is not a loan and will not have to be
    returned, is to help strengthen Yemen's weak
    coin.
  • The Yemeni prime minister made a public appeal for
    funds to shore up the rial and help prevent hunger in the
    country devastated by war.


RIYADH (Reuters) – King Salman of Saudi Arabia ordered a deposit
of $ 2 billion to be paid at the Yemen central bank on Wednesday
to shore up the weak Yemeni currency, the Saudi government
He said.

The move came a day after the Yemeni prime minister issued a statement
public request for funds to shore up the rial and help avoid
Hunger in the country devastated by the war.

"It is not a loan, it is a deposit and the legitimate Yemeni
the government will not have to return it, "a source close to the
The Saudi government said.

Yemen has been divided by almost three years of civil war between
the internationally recognized government, backed by Riyadh,
based in the south, and the Houthi movement aligned with Iran that
it controls the north, including the capital Sanaa.

Its currency, the rial, has lost more than half of its value against
the US dollar and rising prices have put some basic
products out of reach of many Yemenis.

Groundhandling workers told Reuters they expected the rial
rebound due to the injection of Saudi cash.

"It is a strategic move to further harm the North," said one
voluntary. It remains to be seen if the officials in the
It will be paid to the south, which would increase the gap with the North,
he said.

Based in the southern port city of Aden, the Central Bank of Yemen has
struggled to pay the public sector salaries in which many Yemenis
they depend on the decrease in foreign exchange reserves.

The conflict has triggered a humanitarian and economic crisis in
the impoverished country A deadly cholera epidemic broke out the last
year, and the United Nations has said that Yemen could face one
of the deadliest famines of modern times.

"Saving the rial means saving Yemenis from inevitable hunger"
Prime Minister Ahmed bin Daghr said on Wednesday.

Report of Sarah Dadouch in Riyadh; Additional reports
by Stephanie Nebehay in Geneva; Written by Noah Browning;
Edition of Andrew Torchia and Angus MacSwan


Source link