Yemen currency hits lowest exchange rate despite Central Bank continual injections

Yemen's rial hit a new record of low exchange rate against the U.S. dollar on Friday despite the latest of series of cash injection by the country's Central Bank in a bid to help ease the rapid depreciation of the rial, Yemen's currency, local traders said.

The central bank pumped 57 million U.S. dollars on Thursday to the local exchange market, a second cash injection in two weeks to meet increased demand for foreign currencies, state media reported on Friday, citing a statement released by the bank.

Last week, the central bank injected 80 million U.S. dollars to the local market, which failed to buoy up the value of its national currency, rial.

Currencies' traders in the capital Sanaa said the rial hit the lowest level in Friday's trade against the U.S. dollar since the past seven months, recording at 242, compared with 226 against the U.S. dollar on Tuesday.

On Wednesday, the central bank's deputy governor, Mohamed al- Rawdhi, attributed the rial's rapid depreciation to increased demand for foreign currencies to buy foreign goods for the upcoming Muslim fasting month of Ramadan, according to the official news website 26sep.net.

According to official statistics, the central bank has so far injected over 927 million U.S. dollars to the local exchange market since the beginning of this year, in a bid to keep a steady value of the rial.

Impoverished Yemen is struggling to improve the livelihood of its people, resolve economic problems of its secession-inclined southerners and raise funds to reconstruct the post-war northern provinces of Saada.

Source: Xinhua