Saudi Arabia grants $1bn in economic aid to Yemen

30 August 2012

Cash injection to be used to stabilise Yemen’s currency

Saudi Arabia has announced it will provide Yemen’s central bank with a $1bn cash injection in a bid to stabilise the country’s currency.

The sum will be granted via the Saudi Development Fund.

Announcing the grant, Yemen’s planning and international cooperation minister, Mohammad Al-Saadi, said the country requires a further $10bn in foreign aid to stabilise its fragile economy.

“The deposit aims to support the Yemeni government to face the current economic challenges, including stabilising the exchange rates,” the minister said.

Yemen’s economic crisis has been exacerbated in recent months by repeated attacks on oil and gas pipelines in the country by insurgents. The country’s Oil & Minerals Minister, Hisham Sharaf, recently claimed the attacks had cost the Yemeni government $2bn in potential revenues.

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