Prices in Yemen continue to rise
English - Saturday 08 February 2020 الساعة 02:35 pm
aden,newsyemen
The Famine Early Warning System Network said that the expected deficit in foreign currency in Yemen is likely to lead to a further depreciation of the riyal, disruption of food imports and payment of salaries, and upward pressure on food and fuel prices.
In its latest update, the network added that the two billion dollars deposits that Saudi Arabia contributed in early 2018 to stabilize the economic conditions may have been fully depleted during the next two months.
The United Nations Verification and Inspection Mechanism in Yemen reported that Saudi Arabia had stopped approving new letters of credit for food importers.
The USAID network indicated that the information available is that the Kingdom of Saudi Arabia does not intend to provide additional financial support, expecting the value of the local currency, the riyal, to decrease in the parallel market in the coming months.
The Famine Early Warning System Network showed that the absence of more financial intervention will make imports more expensive, leading to higher prices for both food and fuel.
It pointed out that high fuel prices will increase transportation costs, pressure on food prices, and reduce the purchasing power of millions of Yemenis suffering from food insecurity.
