A Former Saudi Deposit Reaches the Central Bank of Yemen Account

Reports

Tue, 21-02-2023 07:06 PM, Aden

Aden (South24)

Saudi Arabia announced today the depositing of $1 billion in the account of the Central Bank of Yemen as a deposit within the support announced on April of last year.

Saudi Arabia's "SPA" news agency said that Saudi Arabia signed an agreement with the Central Bank of Yemen to deposit $1 billion in the bank's account, to support the economic reform program.

The statement added, "We hope that this deposit will contribute to strengthening capabilities in the field of implementing the economic reform program for Yemen with the Arab Monetary Fund as a technical body."

Banking sources told "South24 Center" that the deposit is expected to be deposited in the account of the Central Bank of Yemen in the Saudi National Bank or another Saudi bank.

Riyadh will impose complex procedures before any withdrawal from this account, according to the same sources.

On April 27th, a $1 billion from the Saudi deposit was signed between the Yemeni government and the Arab Monetary Fund as a technical body, according to Yemen's Saba news agency.

Saba said that the support covers the period (2022-2025), and aims to establish the foundations of economic, financial and monetary stability in Yemen.

On April 7, Saudi Arabia and the UAE pledged to support Yemen with $3 billion, of which, $2 billion is allocated as deposits to the Central Bank.

The remaining $1 billion, provided by Saudi Arabia, was allocated to cover power stations in Aden and other governorates from fuel, and to support United Nations programs.

On November 23, the Yemeni Prime Minister, Maeen Abdulmalik, announced the arrival of 1.1 billion Emirati dirhams within the deposit to the Central Bank in Aden.

The exchange market in South Yemen is witnessing great turmoil in the meantime, after the news of the deposit, according to banking sources told "South24 Center".

In early January, "South24 Center" published a report on the reasons for the delay in the arrival of the entire Saudi-Emirati deposit to the Central Bank.

Economic experts blamed the Yemeni government for the reasons for the delay in the absence of the required economic reforms, despite the government's announcement that it would be completed a number of times.

Locals in Yemen live in poor economic conditions amid the largest humanitarian crisis in the world due to the eight-year-old war.

The Houthi attacks in late 2022 disrupted the country's crude oil production and export process, amid the end of the UN truce, which has not yet been renewed, on October 2.

Government measures at the beginning of the new year, by raising the customs tariff rate by 50%, exacerbated the crisis and caused a significant rise in commodity prices. and basic services.

The ceremony for signing the $1 billion Saudi deposit. February 21, 2023 (official)

A Former Saudi Deposit Reaches the Central Bank of Yemen Account