Yemen: Oil fell reflected on public finances

The Central Bank of Yemen Governor Mohamed Awad Bin Hammam, for «noticeable effect of the decline in world oil prices on public finances».

He said in a press statement, that this decline «a remarkable impact in the form of the general Treasury revenues, forcing the government in coordination with the central bank, to prioritize public spending within the limits of available resources, and the potential for non-inflationary financing of the local market». He said that Yemen «released small amounts of oil and gas, and imports at the same time the largest of oil products from the global market amounts».

And pulled out the impact of falling oil prices on the «Central Bank resources from oil and gas exports, but the value of imported petroleum products covered by the« Central », which is now less, making the net effect on the central bank to a minimum». But pointed out that the decline in oil prices «will have a positive impact on the value of imported goods and services, as a result of diminished production costs in exporting countries».

Bin Hammam announced that the foreign reserves of the Central Bank of Yemen «amounted to about $ 4.3 billion in the end of January (last January), which covers the value of the import bill for five months».

He stressed that «this level of precaution reasonable in the light of international standards, which determine the size of foreign reserves at the level of cover three months of imports at least».

And praised «the support of all political forces to the efforts of the central bank in maintaining the stability of the national currency exchange rate against foreign currencies, through the support of its independence and not to influence his decisions as everyone Bank». He added that «distancing political forces from interfering in the central bank's policy, the most important factors that have helped to stabilize the rial exchange rate, despite the challenges and developments in the country».

He said: «We sensed understanding and conviction among all leaders and political forces of the sensitivity of the national currency exchange rate, which enabled the Bank to continue its efforts. This has had a positive impact in a large exchange-rate stability. »

He stressed that the Yemeni political forces position in this aspect «Everyone's body is keen not to influence the people's living standard, especially from low-income».