RIYADH: Saudi Arabia’s announcement of a US$2 billion (Dh7.3bn) cash injection, bringing hope of relief for citizens struggling with high prices in a country that imports most of its food. The economy of the Arab world’s poorest country has been pushed to the brink of collapse by a civil war that began with the takeover of the capital by Iran-backed rebels in September 2014. The government has been unable to pay salaries for more than a year, and the rial has more than halved in value against the dollar, leaving Yemenis unable to afford food staples and bottled wat. The Yemeni currency rose 16 per cent against the dollar on Thursday, a day after Saudi Arabia announced a massive cash injection in the central bank in response to a plea for help by Yemen’s president and prime minister. As the value of the rial goes up, the living conditions of Yemeni citizens will change for the better,” the Saudi information ministry said. Yemen’s rial stood at 215 to the dollar in early 2015 but had dropped steadily to about 500 against the dollar this month. On Thursday, money changers across the country – including in the rebel-held capital Sanaa and the government bastion of Aden – reported the dollar trading at between 420 and 450 rials.
