The World Bank: The Yemeni government's continued printing of currency undermined the economy
English - Saturday 24 October 2020 الساعة 10:47 am
Aden, NewsYemen, Exclusive:
The World Bank said that the legitimate government’s financing of the high budget deficit by overdraft - printing currency - has undermined macroeconomic stability.
In its recent update, "Expectations of Total Poverty in Yemen - October 2020," the World Bank stated that the government's conversion of the deficit into cash caused the acceleration of the depreciation of the Yemeni riyal.
It added, the currency's weakness moved to local prices, which eroded the purchasing power of households and companies.
The bank indicated that the economic conditions deteriorated rapidly in 2020, driven by a decrease in oil exports, a reduction in the volume of humanitarian support, heavy rains and flash floods.
It pointed out that the fragmentation of macroeconomic policies between Sanaa and Aden added more pressure to the fragile economic conditions, with serious humanitarian consequences.
The World Bank expected that the expected formation of a new government within the framework of the Riyadh Agreement will enhance the ability of the legitimate government to face the huge economic challenges facing the country.
