Saudi Arabia Transfers Third Installment of Deposit to Yemen's Central Bank, Boosting Economy

The Saudi Ambassador to Yemen, Mohammed Al Jaber, confirmed on Friday, June 14th, the transfer of the third installment of the Saudi deposit to the Central Bank of Yemen, supporting the internationally recognized government's budget in the face of a deficit.

Al Jaber, in a post on the X platform, monitored by Barran Press, stated that "following the directives of the Saudi King and continuing support for our brothers in Yemen, the third installment of the Kingdom's grant to support the Yemeni government's budget deficit has been transferred to the Central Bank of Yemen in Aden."

The ambassador emphasized that this installment will contribute to "supporting salaries, wages, operational expenses, and food security in Yemen, and will help achieve security, stability, and prosperity for the Yemeni people."

On Thursday, the President of the Presidential Leadership Council, Rashad Al-Alimi, announced that Saudi Arabia had deposited a new installment of its "generous" grant to the general budget. He stated that it would contribute to "paying salaries for employees and addressing service needs."

Al-Alimi said, "Today, the leadership of the Kingdom stood by its promise and deadline by depositing a new installment of its generous grant to the general budget, which will have a significant impact on the state's continued fulfillment of its mandatory obligations, primarily paying salaries for employees, addressing service needs, and increasing humanitarian needs."

In August 2023, Saudi Arabia announced a new economic support package for Yemen worth $1.2 billion to address the Yemeni government's budget deficit, resulting from the Houthis' attacks on oil export terminals in Hadhramaut and Shabwa governorates.

On August 3, 2023, the Central Bank of Yemen announced the arrival of the first installment of the Saudi economic support, amounting to SAR 1 billion, equivalent to $250 million.

On January 16th, the Central Bank of Yemen announced the transfer of $250 million as the second installment of the Saudi deposit, announced by the Kingdom in early August of last year, to support the Yemeni economy.

Yemen faces a severe currency crisis with escalating local currency instability, as the Yemeni rial reached its lowest level against foreign currencies in Aden and areas under the control of the Yemeni government. The exchange rate exceeded 1800 rials per dollar, compared to 1676 rials in late April, while the Saudi rials reached 477 rials for sale, compared to 441 rials previously.

The Yemeni economy faces significant challenges due to the currency division imposed by the Houthi group, internationally designated as a terrorist organization. These challenges intensified following the group's attacks on oil export terminals in October of last year, preventing the internationally recognized government from exporting oil.