Rising Yemen currency sparks hope of relief
ADEN: A sharp rise in the currency of war-torn Yemen on Thursday following a $2 billion Saudi bailout sparked hope of relief for millions at risk of famine and reliant on imported food.
The Yemen conflict has claimed more than 9,200 lives since Saudi Arabia and its allies intervened to help the government fight rebels in 2015, pushing its frail economy to the brink of total collapse.
For more than a year, the government has been unable to pay salaries and the riyal has more than halved in value against the dollar, leaving Yemenis unable to afford food staples and bottled water.
But after Saudi Arabia announced a massive cash injection in the central bank, the Yemeni currency rose 16 per cent against the dollar on Thursday.
Riyadh’s decision to transfer $2 billion to the central bank to boost the riyal followed a desperate plea for help by Yemen’s president and prime minister.
“As the value of the riyal goes up, the living conditions of Yemeni citizens will change for the better,” the Saudi information ministry said.
Yemen’s riyal stood at 215 to the dollar in early 2015, but after fighting began to dropped to 500 against the dollar by 2018.
Money changers across the country reported the dollar trading at between 420 and 450 riyals.