*** ----> Arab $1 billion fund deal for Yemen reforms | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Arab $1 billion fund deal for Yemen reforms

Agencies | Cairo                      

The Daily Tribune – www.newsofbahrain.com  

The Arab Monetary Fund has signed a $1 billion agreement to support Yemen’s economic reform programme to its Saudi-backed government, Saudi state media said yesterday.

The new package by the Abu Dhabi-based fund, which includes countries from the Middle East and North Africa, will provide support for the Yemeni government’s efforts to stabilise the economy from 2022 to 2025.

The war between the Iranaligned Houthi group and a Saudi-led coalition has brought Yemen’s economy to its knees and caused the world’s largest humanitarian crisis. Inflation and foreign currency shortages have made food, water and fuel unaffordable for many in Yemen, which imports most of its needs.

While the Yemeni riyal has been kept relatively steady at around 560 to the dollar in the Houthi-controlled areas, it has reached all-time lows in provinces controlled by the Saudi-backed government. These include Aden, where yesterday one dollar was being exchanged for more than 1,000 rials.