Optimism prevailed in the banking sector in Yemen, with hopes rising that the Yemeni currency would stabilize following the signing of an agreement between Saudi Arabia and the Yemeni government to deposit $2 billion at the Central Bank of Yemen.
Bankers in Aden and Sanaa reported to Asharq Al-Awsat that they expect a gradual progress of the Yemeni currency against foreign currencies in the coming days.
Saudi Arabia and Yemen signed an agreement, on Thursday in Riyadh, to deposit $2 billion in Central Bank of Yemen account, in tandem with directives of Custodian of the Two Holy Mosques King Salman bin Abdulaziz.
The agreement was signed by Saudi Finance Minister Mohammed al-Jadaan and Central Bank of Yemen governor Mohammed Zemam.
This agreement comes in continuation of the Kingdom's support for the Yemeni people, bringing to date the total amount of Saudi deposits to three billion US dollars at the Central Bank of Yemen, reported Saudi Press Agency.
The Kingdom has affirmed its continual support for the Yemeni government and determination to assist it to undertake its duties aiming to restore the security and stability of Yemen, emanating from its interest in alleviating the suffering of the Yemeni people and helping them to cope with the economic burdens caused by the crimes and violations of the Iranian-Houthi militias that manage to plunder the Yemen wealth, seize the revenues of government institutions, including selling and manipulating oil derivatives, collect their revenues in Yemeni Riyal, tamper with its exchange rate and exploit this situation to achieve personal interests, leading to the deterioration of the Yemeni Riyal exchange rate and negatively impact the lives of Yemeni citizens.
Prime Minister Ahmed Obeid bin Daghr expressed gratitude to King Salman and Crown Prince Mohammed bin Salman, adding that this generosity is appreciated by Yemenis.
During three years of the Houthi coup over the legit government in Yemen, the domestic currency lost more than half its value. Yet, for the first time since the coup, the Yemeni government announced a state budget for the current year, worth an approximate of one trillion and a half.
Despite transferring the central bank to Aden, the temporary capital of Yemen, Houthi militias refuse to subdue to the decision and they continue to seize the bank in Sanaa.
