Saturday, 28 August 2010

US dollar declines against Yemeni Rial

Source: Yemen official news agnecy, Saba , 28/08/2010
SANA'A- The national currency continued to improve against foreign currencies ,primarily the US dollar ,which continued to drop recording YR 215, the State-run reported on Friday.

This came after the strict economic measures taken by the government during the last few days, following a fall in the value of Yemeni riyal (YR) to a record level.

The US dollar recorded on Friday YR 215 amid a great satisfaction in the Yemeni streets after it had reached about YR 260 at the beginning of this month, and the other foreign currencies also continued to fall against the riyal, including the UK pounds, euro, Saudi riyal and other currencies.

President Ali Abdullah Saleh, chairing the weekly meeting of the Council of Ministers on August 3, directed the government to focus its efforts to stabilize the price of the national currency, as well as prices of basic foodstuffs.

In the same regard, a senior official at the International Monetary Fund (IMF) said that the gains have been achieved by the Yemeni currency recently are incipient signs that the strict economic reforms began to bear fruit in Yemen.

Head of the IMF's mission to Yemen Hassan al-Atrash told Reuters that the Yemeni government did not intervene in the market last month to support the currency, which indicates that the situation is stabilizing.

"I think that the currency exceeded the acceptable levels in the recent decline and so the recent rise will be welcomed", al-Atrash added.

He pointed out that the economic measures taken by the government eventually have contributed to the exchange rate stability and the protection of foreign exchange reserves, affirming that adequate reserves are available to the Yemeni government for about five months.

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