Saudi Arabia orders transfer of $2bn to Yemen

17 January 2018
Yemen's economy has been battered by the three-year long civil war

Saudi Arabia’s King Salman bin Abdulaziz al-Saud has directed the transfer of $2bn to Yemen’s Central Bank in support of the country's economy, which has been battered by the three year-old civil war.

“The Kingdom of Saudi Arabia affirms its continued support for the Yemeni government … to carry out its duties in order to restore the security and stability of Yemen,” a  statement, carried by the Saudi Press Agency (SPA), said.

It is understood that Yemeni Prime Minister Ahmed Bin Daghr had earlier issued a public plea for funds to prop up the Yemeni currency, which had lost more than half of its value against the US dollar since the war broke out in 2015.

“Saving the [Yemeni] rial means saving Yemenis from inevitable hunger,” Bin Daghr said.

Yemen's Central Bank has struggled to pay public sector salaries due to falling foreign exchange reserves.

In December, Yemen’s former president Ali Abdullah Saleh was killed during fighting between his supporters and Houthi rebels in Sanaa.

Saleh loyalists had formed an alliance with the Houthis and were fighting against President Abdrabbuh Mansour al-Hadi and a Saudi-led coalition.

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