UN Envoy: Top Priority in Yemen is Helping in Fixing the Economy

October 5, 2018

The best way to solve the humanitarian crisis of Yemen is to fix the economy. Thus, stemming slide in the riyal currency is the topmost international priority as said by the UN special envoy. Martin Griffith has stated that United Nations is going to discuss an emergency plan for stemming the rivals fall and restoring the economic confidence. Yemen is known to be one of the poorest nations in Arab and it faces the worst humanitarian crisis of the world, exacerbated by the war which started in 2015.

¾ of the population which is about 22 million people needs aid and about 8.4 million are on the brink on starvation. Marthin Griffith, the envoy has stated that there is no doubt in his mind that this economic issue is of utmost priority. He has also said that inside UN they are talking about a master plan that will have an immediate set of measures over the weeks with UN agencies, IMF, and World Bank, the Gulf, and also the government of Yemen will come together to discuss.

Riyal is known to have lost over half if its value against the US dollar with the start of the war. Authorities have planned to boost liquidity only last year by printing money. However, it plunged from 250 to the dollar just after the first batch of notes had been rolled out.  On Thursday, it was seen to be trading around 700.

The increasing prices has put some the basic commodities out of the reach of the Yemenis and the central bank had to struggle to pay salaries to the public sector on which many people have to depend as the foreign exchange reserves seems to dwindle.  Griffith stated that by November, the UN hopes to resume the consultation with the warring parties. These are the Houthis who seems to be aligned with the Iran and also the internationally recognized government that was backed by Saudi Arabia, the West and the United Arab Emirates.