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

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.


Saudi finance minister reassures public on taxes

Updated 10 December 2019

Saudi finance minister reassures public on taxes

  • Mohammed Al-Jadaan: There will be no more fees and taxes until after the financial, economic and social impacts have been considered carefully
  • The government expects to generate about SR203 billion in taxes this year – more than 20.5 percent higher than the previous year

RIYADH: Saudi finance minister Mohammed Al-Jadaan pledged that there would be no more taxes or fees introduced in the Kingdom until the social and economic impact of such a move had been fully reviewed.

He was speaking at the 2020 Budget Meeting Sessions, organized by the Ministry of Finance and held in Riyadh on Tuesday, where a number of ministers and senior officials gathered following the publication of the budget on Monday evening.

“There will be no more fees and taxes until after the financial, economic and social impacts have been considered carefully, especially in terms of economic competitiveness,” said Al-Jadaan.

The government expects to generate about SR203 billion in taxes this year – more than 20.5 percent higher than the previous year and more than 10 percent higher than the expected budget for this year. 

Most of that increase has come from taxes on goods and services which rose substantially as a result of the improvement in economic activity over the year.

The reassurances from the minister come as the Saudi budget deficit is estimated to widen to about SR187 billion, next year, or about 6.4 percent of GDP.