Order by Yemeni PM to utilize public funds for saving currency

September 26, 2018

The Prime Minister of Yemen, Ahmed bin Daghr ordered the Ministry of Finance and Yemen’s Central Bank for swiftly implementing the recommendations suggested by the Economic Committee. This has been done to ensure the success of the economic measures which have been ordered by the Yemeni government.

Since the coup by the Houthis, the Yemeni rial has been devalued by almost two-thirds and this collapse has been enhanced in the recent weeks. This has been the cause of discontent in the areas which are liberated due to the increased prices.

Majority of the employees are not being able to meet their needs and that has led to President Abd Rabbu Mansur Hadi forming an economic committee which will be led by his adviser Hafez Muayed. This step has been taken to solve the current crisis.

It has been ordered by bin Daghr for any extra foreign cash in the public agencies’ accounts to be used for solving the causes of the devaluation of the currency.

The re-supporting of the import of fuel and commodities has been approved by the Yemeni Economic Committee and the government. Also, there is a restriction on the luxury items imports. Measures have also been adopted in order to stop the deterioration of the economy. The order has also been passed to increase the salaries of the employees.

Although these measures have been taken, the situation has remained grim due to the constant devaluation of the rial. It is valued at 630 against a dollar in the black markets and exchange shops situated in Aden.

He has also issued a decree for closing the public organizations’ accounts which are in the commercial banks and those would be kept in the central bank of the country.

The government has also raised accusations on the Houthi militia which is backed by Iran of purchasing and smuggling the foreign currencies to offshore accounts.