IMF Provides $655 for Yemen as New SDR Allocation

The International Monetary Fund (IMF) said on Aug. 23 that it will provide $665 million worth of reserves to Yemen for alleviating the country’s economic crisis caused by conflicts and the COVID-19 pandemic.

Yemen will receive aid from the IMF’s Special Drawing Rights (SDR), which is the Fund’s unit of exchange used to supplement official reserves of its member countries.

“The SDR allocation will boost Yemen’s foreign exchange reserves by over 70%,” IMF regional representative Gazi Shbaikat said, adding that the aid will help Yemen address the urgent needs of its population.

The ongoing Yemeni Civil War has exhausted Yemen’s foreign exchange reserves and its economic situation worsened after the COVID-19 crisis caused remittances and oil prices to drop.

IMF representative Brett Rayner stated on June after a Yemeni mission that the country will soon need to secure external support to recover from its large fiscal deficit.

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