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.


Siemens CEO pushes plans to boost Iraqi power infrastructure

Updated 23 September 2018
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Siemens CEO pushes plans to boost Iraqi power infrastructure

FRANKFURT: Siemens said its boss Joe Kaeser met Iraq’s prime minister on Sunday to discuss a proposal by the German company to expand the Middle East nation’s power production.
The German engineering group said it was proposing a deal to add 11 gigawatt (GW) of capacity over four years, saying this would boost the country’s capacity by nearly 50 percent.
It did not give a value, but such a contract would be worth several billion euros based on previous comparable deals.
Iraq has a wide gap between electricity consumption and supply. Peak demand in the summer, when people turn on air conditioners due to high temperatures, is about 21 GW, far exceeding the 13 GW the grid is currently provides, experts say.
Kaeser said in a statement after meeting Prime Minister Al-Abadi that they had “discussed the comprehensive Siemens roadmap to build a better future for the Iraqi people.”
“In Egypt, we have done the same and successfully built up the power infrastructure in record time with the highest efficiency,” he said.
In 2015, Siemens signed an 8 billion euro ($9.4 billion) deal with Egypt to supply gas and wind power plants to add 16.4 gigawatts of capacity to the country’s power grid, marking the group’s single biggest order.
The proposal for Iraq, first pitched in February, would include cutting Iraq’s energy losses, introducing smart grids, expanding transmission grids, upgrading existing plants and adding new capacity.
The group would also help the government secure funding from international commercial banks and export credit agencies with German government support, creating thousands of jobs in Iraq.
Siemens would donate a $60 million grant for software for Iraqi universities, it said.