Yemen C.Bank takes steps to ease pressure on citizens amid currency crisis

Yemeni youths flash the "v for victory" sign in Crater, on September 6, 2018, as protesters demonstrate against inflation and the rise of living costs. (AFP)
Updated 11 September 2018
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Yemen C.Bank takes steps to ease pressure on citizens amid currency crisis

  • The governor explained that the $62 million from the Saudi deposit
  • The Yemeni rial has lost more than half its value against the US dollar since the start of the war

ADEN: The Governor of the Central Bank of Yemen, Dr. Mohammed Mansour Zammam, said on Monday that a number of steps have been taken to ease pressure on currency markets and provide basic commodities to citizens at appropriate prices in different governorates.

“The Saudi minister of finance approved 23 applications valued at over $62 million made by Yemeni commercial banks,” Zammam said in a statement issued by the Central Bank.

The governor explained that the $62 million from the Saudi deposit. Saudi Arabia signed an agreement in March to deposit $2 billion into the account of Yemen’s central bank, under the instruction of King Salman.

Zammam said that funds and basic commodities were provided to Yemeni commercial banks for amounts of less than $200,000 as well as direct funding from the Central Bank in coordination with the government and the Economic Committee.

The Central Bank has also taken executive measures to commission Yemeni commercial banks to sell $2000 to citizens leaving Aden or Seiyun. Commercial banks will be compensated for such amounts by the Central Bank upon receipt of claims and currencies.

The statement stated that facing the economic crisis requires a combination of all governmental and societal efforts and assured that no institution, ministry or entity will face the dangers of economic collapse.

The Yemeni rial has lost more than half its value against the US dollar since the start of the war in 2015 between the government of President Abd-Rabbu Mansour Hadi, based in the south the Iran-aligned Houthi movement that controls the north including the capital, Sanaa.


Thomas Cook warns on profit as hot summer hits demand

Updated 50 sec ago
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Thomas Cook warns on profit as hot summer hits demand

  • Thomas Cook makes all its profit in the summer when its customers in northern Europe go on holiday
  • But ‘unprecedented months of hot weather’ reduced demand for late bookings
LONDON: British travel company Thomas Cook cut its 2018 profit outlook by about 13 percent, blaming a heatwave in northern Europe for more discounting and tougher competition in the most profitable later part of the summer holiday season.
Thomas Cook makes all its profit in the summer when its customers in northern Europe, including Britain, Germany and Scandinavia go on holiday, mainly to warmer destinations in southern Europe such as Spain, Turkey and Greece.
But what the company described as “unprecedented months of hot weather” reduced demand for late bookings, adding to pressure after it had already warned in July that profit would be at the lower end of expectations.
“The slowdown in customer bookings during June and July extended into August, leading to higher than normal levels of promotional activity,” Thomas Cook said in a statement on Monday.
Thomas Cook’s bigger rival TUI Group in August stuck to its forecasts but said that the heatwave would prevent it from beating them.
For the 12 months to Sept. 30 2018, Thomas Cook guided that underlying operating profit (EBIT) would come in at around £280 million ($366 million), below a previous £323 million to £355 million range.
The company also said the hot summer was affecting demand for winter holidays, saying that it would provide more detailed guidance in November when it reports its annual results.
In a separate statement, Thomas Cook said its chief financial officer Bill Scott would leave the company on November 30, and be replaced on an interim basis by Sten Daugaard, a board member of Thomas Cook’s German business.
A search for a permanent successor would be started immediately, the company added.