RIYADH: Saudi Arabia announced on Wednesday it would switch $2 billion to Yemen's central bank, following desperate requires a monetary rescue from the beleaguered government it has supported militarily for just about 3 years.
The bailout aims to curb the autumn in price of the Yemeni riyal, which has plummeted as the conflict between the Saudi-backed government and Huthi Shiite rebels who keep an eye on the capital Sanaa and much of the north has dragged on.
"To address the deteriorating economic situation faced by the Yemeni people as a result of the actions of the Iranian-backed Huthi militias, King Salman bin Abdulaziz has issued a directive to transfer a $2 billion deposit to the central bank of Yemen," the Saudi internal ministry said.
The riyal currently trades at 500 to the buck, down from round 215 earlier than the conflict, a major depreciation for a country that is based heavily on imports of basic foodstuffs.
In 2016, the Yemeni government moved the central bank to second town Aden from the capital the place the rebels operate their very own rival central bank.
More than a million civil servants lost their jobs within the bank switch, and each the Sanaa and Aden central banks have struggled to pay salaries.
Saudi Arabia, which itself faces a hefty budget deficit, has led a military coalition in beef up of the federal government since March 2015.
But as the intervention nears its fourth 12 months, the federal government's authority continues to be in large part confined to the south.
The warfare has left more than three-quarters of Yemenis wanting humanitarian help and a few 8.4 million prone to famine, the UN humanitarian affairs workplace said on Tuesday
In a post on Facebook, Prime Minister Ahmed bin Dagher shared a letter urging the federal government's backers to switch cash to the central bank to "save Yemenis from famine".
President Abedrabbo Mansour Hadi reached out to Saudi Crown Prince Mohammed bin Salman over "the economic challenges Yemen faces" in a phone call on Tuesday, Yemen's government-run Saba news company said.
Saudi Arabia, the sector's biggest exporter of oil, has posted large budget deficits up to now 4 fiscal years as a 2014 slide in crude prices has hit revenues.
Despite introducing new taxes and chopping spending, the dominion does no longer expect to balance its books earlier than 2023.
The bailout aims to curb the autumn in price of the Yemeni riyal, which has plummeted as the conflict between the Saudi-backed government and Huthi Shiite rebels who keep an eye on the capital Sanaa and much of the north has dragged on.
"To address the deteriorating economic situation faced by the Yemeni people as a result of the actions of the Iranian-backed Huthi militias, King Salman bin Abdulaziz has issued a directive to transfer a $2 billion deposit to the central bank of Yemen," the Saudi internal ministry said.
The riyal currently trades at 500 to the buck, down from round 215 earlier than the conflict, a major depreciation for a country that is based heavily on imports of basic foodstuffs.
In 2016, the Yemeni government moved the central bank to second town Aden from the capital the place the rebels operate their very own rival central bank.
More than a million civil servants lost their jobs within the bank switch, and each the Sanaa and Aden central banks have struggled to pay salaries.
Saudi Arabia, which itself faces a hefty budget deficit, has led a military coalition in beef up of the federal government since March 2015.
But as the intervention nears its fourth 12 months, the federal government's authority continues to be in large part confined to the south.
The warfare has left more than three-quarters of Yemenis wanting humanitarian help and a few 8.4 million prone to famine, the UN humanitarian affairs workplace said on Tuesday
In a post on Facebook, Prime Minister Ahmed bin Dagher shared a letter urging the federal government's backers to switch cash to the central bank to "save Yemenis from famine".
President Abedrabbo Mansour Hadi reached out to Saudi Crown Prince Mohammed bin Salman over "the economic challenges Yemen faces" in a phone call on Tuesday, Yemen's government-run Saba news company said.
Saudi Arabia, the sector's biggest exporter of oil, has posted large budget deficits up to now 4 fiscal years as a 2014 slide in crude prices has hit revenues.
Despite introducing new taxes and chopping spending, the dominion does no longer expect to balance its books earlier than 2023.
Saudi Arabia announces $2 billion bailout for Yemen
![Saudi Arabia announces $2 billion bailout for Yemen]()
Reviewed by Kailash
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January 17, 2018
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