Saudi Arabia’s $2bn cash transfer gives hope to Yemenis as rial rises against dollar

The Yemeni rial rose by almost 10 per cent against the United States dollar after Saudi Arabia signed an agreement with the Central Bank in Aden to transfer US$2 billion (Dh7.34bn) to shore up the war-ravaged country’s economy.

The Yemeni Prime Minister, Ahmed bin Dagher, confirmed the transfer in a tweet on Friday, thanking Saudi King Salman and Crown Prince Mohammed bin Salman. “With great thanks, respect and appreciation to our brothers in KSA,” Mr bin Dagher said.

Saudi Arabia leads the Arab military coalition supporting Yemen’s internationally recognised government against Iran-backed Houthi rebels who seized the capital in 2014.

The rebels still hold large areas of Yemen after three years of war that have crippled the economy, displaced millions and destroyed infrastructure in the poorest Arab nation.

The rial dropped as a result of the war and Houthis looting the Central Bank before President Abdrabu Mansur Hadi moved it to Aden in 2016.

Residents in Aden were optimistic yesterday after the rial’s rise, hoping this will lower food costs.

“We are looking forward to an improving situation in Aden,” said Mahmood Al Hudyani, a hotel receptionist.

“We were living desperately because the Yemeni rial lost its value, which was driving us crazy.

“My salary became something trivial. I earn 60,000 rials [Dh881] – imagine what that brings me and my family.”

On Friday, Yemeni troops repelled another attempt by Houthis to bring in fighters by sea in Hodeidah, a western front spokesman said.

The rebels tried to land near Kataba village in Khoukha district, south of Hodeidah city, Col Naser Al Redhami told The National.

They were killed in a battle lasting hours, he said.

The Yemeni military’s September26 website said a seaborne attack on the same site was foiled on Tuesday when the military blew up three boats, killing rebels on board.

On Friday, the Arab coalition air defences intercepted a rebel missile fired at Yemeni troops in Mokha, a coastal area between Hodeidah and Taez provinces, soldiers told