Roundup: Yemen's economy on brink of total collapse: PM

Source: Xinhua| 2018-10-03 03:13:32|Editor: yan
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by Murad Abdu

ADEN, Yemen, Oct. 2 (Xinhua) -- Prime Minister of Yemen's government Ahmed Obeid bin Daghr declared on Tuesday that the country's economy is teetering on the brink of total collapse, at a meeting following the rapid depreciation of the national currency.

Bin Daghr and high-ranking Yemeni officials attended the meeting in Saudi Arabia's capital of Riyadh to discuss the reasons that caused the rapid depreciation of the Yemeni riyal, according to the state-run Saba news agency.

Bin Daghr said that "the country is passing through very complicated days and teetering on total economic collapse."

"Only a number of hours were separating us from the total collapse of the country's already weakened economy," he said during the meeting.

"The collapse led to a state of fear, anxiety, and even panic among citizens from different social categories, the rich and the poor," he said, adding that "many Yemenis asked me about the reasons and that's all because of the country's general situation."

The prime minister expressed his gratitude and thanked Saudi Arabia for giving 200 million U.S. dollars to Yemen's Central Bank to shore up its reserves following the latest collapse of the currency that reached a critical point.

He also said that Yemen needs an economic conference under the auspices of Saudi Arabia and other countries of the Gulf Cooperation Council to address the recent currency devaluation.

The depreciation of Yemeni riyal continued in recent days. In the street markets in Aden, where the Saudi-backed government is officially based, one U.S. dollar was traded for 800 riyals, up from 215 riyals compared with the rate before the war.

With the sharp devaluation of the local currency against major foreign currencies, prices of basic commodities witnessed hikes, worsening the economic woes and leaving many citizens in destitute in the war-ravaged Arab country.

Exchange companies and commercial banks in Aden and the Houthi-controlled capital Sanaa started a general strike on Monday and suspended all their services due to the recent currency collapse.

"All the banking operations as well as selling and buying foreign currencies will be suspended starting from today in solidarity with the Yemeni citizens," according to a joint statement released by exchange company owners in Aden.

Earlier in the day, large demonstrations were staged in several provinces controlled by the Saudi-backed Yemeni government protesting against the currency devaluation and demanding economic reforms.

In the southwestern province of Taiz, demonstrations marched to the city's main streets and raised slogans demanding the neighboring Gulf countries to save their deteriorating economy.

The Yemeni economy is continuing to suffer after all exports were halted following a blockade on the country which was part of a Saudi-led military intervention in March 2015. The blockade has also largely restricted imports.

All investments, including oil and gas projects, whose revenues used to contribute more than 70 percent of the state budget, were shut down.

Flow of foreign cash has stopped almost completely and widespread corruption within the government institutions also deepened the economic misery.

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