Barran Press
President of Yemen's Presidential Leadership Council, Rashad Al-Alimi, announced on Thursday, June 13th, 2024, that Saudi Arabia has deposited a new installment of its "generous" grant to Yemen's general budget. He stated that this will contribute to "paying salaries for government employees and addressing service needs."
In a tweet on X, Al-Alimi expressed "thanks and appreciation" to the Saudi leadership for its "brotherly and kind stances" towards the Yemeni people, aiming to alleviate their humanitarian suffering.
He added: "Today, the Kingdom's leadership has kept its promise and delivered on its commitment by depositing a new installment of its generous grant to the general budget. This will have a significant impact on the state's continued fulfillment of its essential obligations, primarily paying salaries for employees, addressing increasing service and humanitarian needs."
Prime Minister of the internationally recognized Yemeni government, Ahmed bin Mubarak, also expressed gratitude to the Saudi leadership for its "generous support for the general budget and the grant for purchasing oil derivatives."
In a post on X, bin Mubarak considered this support as a "continuous expression of the authentic stances of the Kingdom of Saudi Arabia and its unwavering support for the Yemeni people."
He pointed out that "this support will enable the Yemeni government to pay salaries for state employees, improve electricity services, stop the decline in the currency value, and allow it to resolutely pursue the program of financial and administrative reform."
Yemen faces a severe currency crisis with the escalating instability of the local currency. The exchange rate of the riyal against foreign currencies has reached its lowest level in Aden and areas controlled by the Yemeni government, with one US dollar exceeding 1800 riyals. This is a significant increase from late April when it was 1676 riyals, while the Saudi riyal also reached 477 riyals for sale, up from 441 riyals.
The Yemeni economy faces immense challenges due to the currency split imposed by the Houthi group, designated as a terrorist organization by the international community. These challenges intensified after the group bombed oil export ports in October 2023, preventing the internationally recognized government from exporting oil.
On August 1st, 2023, Saudi Arabia announced a new financial grant of $1.2 billion to the internationally recognized Yemeni government to finance the general budget and support the value of the Yemeni riyal.