Yemen’s central bank has raised interest rates on deposits to an all-time high of 27% in a bid to stabilise the plunging riyal that caused food prices to soar, AFP reported Wednesday (September 19th).
The bank also raised interest rates on government bonds to 17% from 12% and banned taking out of Yemen more than $10,000 without a prior permit, local media reported.
Previously the interest rate on deposits was 17% according to the Facebook account of the central bank run by the internationally recognised government.
The move is aimed at strengthening the riyal and reducing skyrocketing inflation.
The UN Office for the Co-ordination of Humanitarian Affairs said Monday that currency depreciation is likely to make another 3.5 million people food insecure, in addition to 8.4 million people who need emergency food assistance.
Save the Children warned Wednesday that more than five million children are at risk of famine in Yemen.
