The Kingdom of Saudi Arabia and the Republic of Yemen, in response to the request of the Government of the Republic of Yemen to assist it in addressing its budget deficit, and in support of the Presidential Leadership Council.
The move followed directives from the Custodian of the Two Holy Mosques and His Royal Highness the Crown Prince and Prime Minister, based on the strong bonds of brotherhood and longstanding ties between the two countries.
“This support is for the Yemeni Government’s budget deficit, salaries, wages, and operating expenses and for guaranteeing Yemen’s food security. It is in addition to what the Kingdom has previously offered regarding economic and development assistance”, reports SPA.
The move, which is within the framework of the agreement reached between the governments of the Kingdom of Saudi Arabia and the Republic of Yemen, was made possible through the Saudi Development and Reconstruction Program for Yemen (SDRPY).
It is part of the Saudi government’s role to aid the Yemeni people, alleviate their suffering, and bolster the Yemeni economy to enable the Yemeni government to fulfil its other obligations.
The Kingdom of Saudi Arabia has already provided deposits in the Central Bank of Yemen, bringing the total amount provided to the Central Bank of Yemen to USD 4 billion during the period from 2012 to 2022.
The deposits come to improve the daily life of the brotherly Yemeni people, as the Kingdom provided USD 1 billion in 2012 and USD 2 billion in 2018 in the account of the Central Bank of Yemen as a deposit designated to cover the import of basic food commodities (wheat grains, wheat flour, rice, milk, cooking oil, and sugar), which contributed to improving the human development index, strengthening the Central Bank’s reserves of foreign currencies.
The previous Saudi deposit reduced fuel and diesel prices by about 36% in 2019, and the average cost of the lowest food basket decreased by about 16% in 2018.
It maintained its stability until the end of 2019, as well as a decrease in the prices of imported food commodities by about 19% after it reached its peak in October 2018.
The real GDP growth rate during 2018 and 2019 saw a rise of about 0.75% in 2018 and 1.4% in 2019, according to 2022 estimates by the International Monetary Fund.
It also contributed to the rise in foreign currency reserves in the Central Bank of Yemen from USD 900 million in 2017 to USD 2.5 billion in 2018, the increase in total food imports in 2019 by 17% compared to 2018, and the decrease in exchange rates in 2018 by 25%.
Source: Bahrain News Agency