The World Bank (WB) has heeded Yemeni government calls on standardizing financial aid channels through the Aden-based Central Bank of Yemen, official Yemeni sources reported, adding that the move comes to boost the Yemeni rial.
Yemen's Minister of Planning and International Cooperation Najib Ouj, according to sources, told the WB about the importance of empowering executive units in government agencies.
Ouj stressed the need to enable public work projects, the social fund for development, the social welfare fund, and other national institutions.
In a video conference with WB Executive Director Merza Hasan, Ouj urged the forming of steering committees for all upcoming portfolio projects.
With the participation of concerned ministries, these committees will contribute to upholding transparency and activating the role of oversight.
This is also set to reduce operating costs while expanding the circle of beneficiaries.
Ouj proposed that a WB team of experts holds a technical meeting with CBY operators and officials from the Planning and International Cooperation Ministry to draft an applicable mechanism for unifying the channels of international aid delivery to Yemen through the Aden-based and in Yemeni currency, Riyal.
He also stressed the importance of the WB activating its partnership with the CBY on all coordination levels to implement projects that help Yemenis across the country.
Ouj also reviewed coordination between the Yemeni government and WB offices and ways to enhance communication and follow-up on current and upcoming projects.
The Yemeni government had urged the international community to funnel aid sent to the war-torn country through the Aden-based CBY, saying that this will help boost the faltering national currency and enable control over the local banking market.
Ouj conveyed this message to officials at the WB and noted that the Yemeni economy had shrunk by almost half over the last five years, since the Houthis staged a nationwide coup.
Over the last five years, Yemen’s Gross Domestic Product (GDP) contracted by 5%, he revealed.
A World Bank team had previously announced that portfolio projects allotted to Yemen, scheduled for approval in March 2021, are designed to cover integrated projects of education, social protection, and urbanization services with a total cost of $371 million.
