Economic researcher: The deposit is conditional on economic reforms and clear mechanisms

English - الثلاثاء 16 أغسطس 2022 الساعة 11:26 ص
Aden, NewsYemen, Muhammad Jassar:

The economic deterioration in the liberated areas is increasing day by day in the absence of a glimmer of hope for a solution, as well as the continued collapse of the local currency against foreign currencies, which confirms the importance of the rapid arrival of the Saudi-Emirati deposit estimated at 3 billion dollars to save the economy and reduce prices.

However, the arrival of the deposit requires real economic reforms and mechanisms that clarify how to use the deposit amount in a way that contributes to the stability of the local market and the improvement of the economy.

NewsYemen had a meeting with the economic and political researcher Omar Saleh to talk about this issue, and this outcome was:

 - What are the factors that led to the recession in the country's economy?

The most prominent factors of stagnation in the economy are the depreciation of the currency, which in turn led to a weakening of purchasing power, and caused a stagnation in the economic process, for example, there is a certain commodity from the past where the exchange rate was acceptable, this commodity was able to be bought by 80% of citizens, and now it has become the same commodity and the same  Quality, which no more than 15% of citizens can buy, and thus caused a stagnation in the economy and the accumulation of goods among merchants, which deepened the current economic deterioration.

There is the second issue, which is no less important than the first issue, which is the political and security instability, because the capital in the economic base is cowardly, and it needs security and financial stability to build projects at home.

 Does the opening of markets and malls in the city of Aden contribute to the stability of the economy?

This question is very good, because the economic development projects are the projects that build factories and factories, and all the projects in particular after the 2015 war became the opening of malls or hotels, and this does not contribute to the stability of the economic situation in the country.

 - What do you think about closing Aden Mall, which was one of the arteries of the economy in Aden?

Of course, the closure of Aden Mall took place because of its location near Ma’ashiq, which is a station that became for several confrontations, between some of the conflicting parties in Aden, which necessitated the closure of the famous market, for fear of looting that occurs after any armed conflict, not only in our country, but also  in all parts of the world.

- The last question, Mr. Omar, what is the main reason for delaying the Saudi-Emirati deposit, which will help the central bank to stop the state of inflation in the market and curb the currency’s decline, which is increasing day by day?

The reason for the delay in the Saudi-Emirati deposit is due to two main reasons: the first reason is the demand of Saudi Arabia and the UAE for the Yemeni government to carry out real economic reforms, and the second reason is the establishment of conditions and mechanisms for the use of the deposit by the Central Bank.