$1 billion deal to support Yemen

The Arab Monetary Fund has signed a $1 billion agreement to support Yemen’s economic reform programme to its government, Saudi state media said on Sunday.

The new package by the Abu Dhabi-based fund, which includes countries from the Middle East and North Africa, will provide support for the Yemeni government’s efforts to stabilise the economy from 2022 to 2025, Saudi Ekhbaria TV reported. The war has brought Yemen’s economy to its knees and caused the world’s largest humanitarian crisis. Inflation and foreign currency shortages have made food, water and fuel unaffordable for many in Yemen, which imports most of its needs.

While the Yemeni riyal has been kept relatively steady at around 560 to the dollar in the Ansar Allah-controlled areas, it has reached all-time lows in provinces controlled by the government. These include Aden, where on Sunday one dollar was being exchanged for more than 1,000 rials.

Saudi Arabia said in April it would arrange $3 billion of support to the war-torn country’s economy after a new presidential council was formed. It was not clear if the whole sum has been disbursed. —