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Yemeni Government Asserts Need to Accelerate Reforms to Protect Economy, Currency

Yemeni Government Asserts Need to Accelerate Reforms to Protect Economy, Currency

Thursday, 26 January, 2023 - 09:45
Displaced Yemenis stand in line to receive UN humanitarian aid in Hajjah (AFP)

The Yemeni government on Thursday stressed the need to accelerate the adopted reforms to protect the economy and the local currency.

The cabinet asserted its commitment to rationalizing spending and ensuring that the population is not affected by the measures taken to increase revenues.

Prime Minister Maeen Abdulmalik chaired a cabinet meeting to discuss the necessary measures to face any possible change within the context of confronting the Houthi militia, ending the coup, and restoring legitimacy.

The government approved a 50 percent increase in the US dollar exchange rate used to calculate customs duties on non-essential imported goods to increase resources, which sparked controversy despite a pledge that citizens would not be affected.

Official sources stated that the government evaluated the performance during the past two years, discussed the general political and economic conditions, and the financial and monetary measures it took according to the presidential directives to maintain the national economic stability.

Saba news reported that the government reviewed the arrangements ensuring the measures do not affect the citizens or the available options for revenue development, stressing the need to activate the productive, investment, and revenue sectors.

The Yemeni government affirmed its keenness to ensure control over the measures accompanied by steps aimed at maintaining economic stability and preventing national currency collapse.

It is part of the coordinated efforts with the Presidential Leadership Council to reduce the catastrophic effects of the Houthi terrorist attacks on oil installations and mitigate its repercussions on the humanitarian and economic situation.

The meeting reviewed the policies required to boost the economy, generate, diversify, and expand revenues while ensuring their access to the general government account.

It also called for controlling and rationalizing expenditures, limiting them to necessary spending in a way that leads to achieving financial and monetary stability.

The Yemeni cabinet affirmed it would continue with the measures aimed at reducing expenditures, including revising the lists of scholarships to study abroad and removing those who are not eligible, reducing the numbers of personnel in diplomatic missions and attachés, enhancing transparency, and combating corruption.

Official sources stated that the Yemeni government discussed the directives of the Presidential Leadership Council to provide the necessary facilities for the private sector and protect it as a significant partner in the development and comprehensive economic reform.

The Prime Minister stressed the importance of government efforts and organizing priorities in line with urgent needs, aiming to alleviate the suffering of citizens.

Meanwhile, unnamed official sources indicated that the meeting reviewed the report of the Minister of Foreign Affairs and Expatriate Affairs on political developments.

The report addressed the ongoing UN and international moves to extend the truce, the Houthis’ continued obstruction of those efforts, and the need for finding a new approach to deal with the Iran-backed militia’s intransigence.

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