Saudi king orders provision of $200m to Yemen

Saudi Arabia’s King Salman has ordered the provision of $200 million to the Central Bank of Yemen to boost the country’s financial position.

The latest donation will contribute towards alleviating the economic burden of Yemenis and follows a previous $3 billion grant the kingdom provided to the Central Bank of Yemen, state news agency WAM reported.

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Saudi Arabia said the funds affirm its continued support of the Yemeni government in its efforts to restore security and stability.

The new deposit comes less than two weeks after the central bank in the government’s de facto capital of Aden raised interest rates on deposits to an all-time high of 27 percent after the riyal slid more than 36 percent since January.

The slide has seen a sharp rise in food and fuel prices that triggered protests across the government-held south in early September and prompted the government to raise public sector salaries by 30 percent.

In June, two relief planes were dispatched by the King Salman Humanitarian Aid and Relief Centre carrying food and shelter materials to Aden, Yemen.

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This was the first Saudi airlift to the Yemeni people.