Saudi Arabia to deposit $2bn in Central Bank of Yemen

Saudi Arabia signed an agreement in Riyadh to deposit $2 billion in the Central Bank of Yemen, Saudi Press Agency said late yesterday.

The agreement signed between Saudi Finance Minister Mohammed Al-Jadaan and Central Bank of Yemen governor Mohammed Mansour Zemam aims at shoring up the weak currency in a country divided by nearly three years of civil war between the internationally recognised government, backed by Riyadh, based in the south, and the Iran-aligned Houthi movement which controls the north including the capital Sana’a.

Al-Jadaan said: “This support strengthens the financial and economic situation in the Republic of Yemen, especially the exchange rate of the Yemeni riyal, which will positively affect the living conditions of Yemeni citizens.”

Read: Saudi Arabia sends two billion dollars to Yemen’s Central Bank

Saudi Arabia also affirmed its continued support for the Yemeni government and its assistance to carry out its duties in order to restore Yemen’s security and stability.

Riyadh is leading a coalition of Arab states which began launching air strikes in Yemen in March 2015 to restore to power internationally backed President Abd Rabbuh Mansur Hadi, who was driven from the capital in 2014 by Houthi fighters and militias allied with former President Ali Abdullah Saleh.

Saleh severed ties with the Houthis on 2 December; he was killed by the group two days later.

More than 20 million Yemenis need urgent humanitarian aid. At least 14 million lack basic health care or access to clean water. And more than one million suffer from suspected cases of cholera as a result of the ongoing conflict.

Saudi quagmire in Yemen – Cartoon [Latuff/MiddleEastMonitor]