UN special envoy to Yemen Martin Griffiths said the United Nations is discussing an emergency plan to stem the riyal’s fall and restore the economic confidence.
“There’s no doubt in my mind whatsoever that this economic issue is now the overwhelmingly most important priority,” Griffiths told Reuters on Thursday.
“Within the UN we’re talking about the need for such a master plan ... an immediate set of measures over weeks which the World Bank, IMF, UN agencies, the Gulf obviously, the government of Yemen could come together to discuss,” he said.
For his part, Yemeni Foreign Minister Khaled Al Yamani told Asharq Al-Awsat on Thursday it was important to face the economic deterioration in the country.
“After Houthis suffered from defeats at several military fronts in Yemen, they are now turning to the economic front,” he warned.
Early this week, Custodian of the Two Holy Mosques King Salman bin Abdulaziz ordered a grant of $200 million to Yemen’s central bank to help shore up the weak Yemeni currency, which has lost more than half its value against the US dollar.
The riyal has lost more than half its value against the US dollar since the start of the war. Authorities sought to boost liquidity last year by printing money, but it plunged from 250 to the dollar after the first batch of notes was rolled out. It was trading at around 700 on Thursday.
Meanwhile, the UN envoy hopes to resume consultations with the Yemeni warring sides by November.
Griffiths wants to logistically prepare for those talks to avoid more “last-minute surprises,” and therefore, avoid pre-conditions placed by Houthis as a pretext not to attend the September 6 round of negotiations.
When asked if the Yemeni government had received any invitation to attempt the next round of talks, Al Yamani told Asharq Al-Awsat, “Not yet.”
The minister said, “Griffiths is obliged to provide guarantees and assure that Houthis would take part in the talks and would not escape from peace obligations.”
Al Yamani added that the Yemeni government is, in principle, with the UN envoy’s peace efforts and it supports his efforts to bring rebels to the negotiation table to discuss measures for building trust among the warring parties.
