Saudi Arabia deposits $2 billion in Yemen central bank to back currency
Saudi Arabia’s King Salman ordered a deposit of $2 billion to be paid into Yemen’s central bank on Wednesday to shore up the weak Yemeni currency, the Saudi government said, Reuters reports.
The move was made a day after the Yemeni prime minister issued a public plea for funds to prop up the rial and help stave off hunger in the war-torn country.
“It’s not a loan, it’s a deposit and the legitimate Yemeni government will not have to pay it back,” a source close to the Saudi government said.
Its currency, the rial, has lost more than half its value against the U.S. dollar and soaring prices have put some basic commodities out of reach for many Yemenis.