The recent Saudi support for the Yemeni government.. to save the economy or to continue the armistice?
English - Wednesday 02 August 2023 الساعة 04:53 pm
Aden, NewsYemen, exclusive:
Reuters published, on Tuesday, a confirmation via a Saudi source that the government of the Kingdom of Saudi Arabia will support the Presidential Leadership Council with an amount of $1.2 billion to meet the economic burdens that are collapsing in the liberated areas since the Houthi militia bombed the oil export ports in Hadramout and Shabwa and threatened to bomb again if the government resumed the operation. export.
The Saudi source said that this support "will contribute to strengthening security and preventing the return of military clashes." This statement carries a double meaning to the military clashes between the forces affiliated with the legitimate government supported by the Arab coalition (Saudi Arabia and the UAE), especially with the escalation of criticism directed at the government of Maeen Abdul Malik due to the deterioration of basic services and the collapse of the national currency. The Saudi source's statement also bears a reference to "preventing the return of military clashes" between the Houthi militia and the legitimate government forces as they were before the April 2022 armistice agreement, especially with his realization that this financial support for the government "will encourage dialogue from all parties to reach a comprehensive political solution to the Yemeni crisis."
In the same context, a government source told Reuters that the Saudi support this time will be used "to pay government salaries, fuel for power stations, and food imports."
As soon as the news of Saudi Arabia allocating this amount to support the efforts of the Presidential Leadership Council to stop the collapse of the economy spread, the Yemeni riyal in the liberated areas recorded a slight improvement against hard currencies, as the exchange rate fell on Tuesday, August 1, from 1420 riyals per dollar to 1380 riyals.
And the Central Bank of Yemen announced, on Tuesday, the postponement of the foreign currency sale auction No. (28-2023), due to the continued decline in the currency exchange movement against the exchange rate of the Yemeni riyal, according to a bank statement that was circulated in the media.
The bank said, in its statement, that "based on a number of banks communicating with the Central Bank and their request to postpone the foreign currency sale auction No. (28-2023) on today, August 1, 2023, due to the continued movement of the foreign exchange rate towards the decline against the exchange rate of the Yemeni riyal." . He added, "Accordingly, it was decided to postpone the aforementioned auction until next week."
These developments come in light of the Houthi militia's continued escalation of its threats to resume military operations against the legitimate government and the countries of the Arab coalition, including targeting the islands by bombing.
The head of the Presidential Leadership Council said, on Monday, in a meeting with the Chinese ambassador to Yemen, that the government is committed to the peace path according to the three references (the Gulf initiative, the outputs of the National Dialogue Conference, and Security Council Resolution No. 2216), while the Houthi militia's political escalation during the past days included the demand Establishing new references for peace.
The liberated areas are suffering from an economic crisis that is getting more severe day after day as a result of the economic war waged by the Houthi militia against the legitimate government since October 2022.
Although the Kingdom of Saudi Arabia has been accustomed to providing financial support to the legitimate government since the beginning of its military intervention on the side of the government against the Houthi militia, the support provided this time raises questions about the goals it will achieve in supporting the economy and improving the level of basic services for citizens, especially electricity and water and reducing food prices, or in avoiding The return of military confrontations between the forces represented in the Presidential Leadership Council and the Houthi militia?
Some questions also arise about the extent to which this support will last compared to what preceded it in terms of financial support and bank deposits to stop the collapse of the national currency, provide fuel for electricity, employee salaries, and secure imports of food and basic commodities!
