Yemen Foreign Assets Surge to $5.89 Bn, Debt Amounts $6 Billion

The Central Bank of Yemen (CBY) has announced that the bank›s reserves at the end of last August rose to 1.265 trillion riyals – approximately $5.89 billion dollars.

The net foreign assets of the banking system had reached at the end of last July 1.37 trillion riyals – approximately $5.73 Bn.

The report issued by the Department of the Research and Statistics in the CBY has pointed out that the oil exports (the Yemeni government›s share) during August reached 233 million dollars in comparison with 270 million dollars in last July, where oil production declined by 13.6%.

The government›s share of the total quantity of oil exports during January-August 2010 reached to 22.14 million barrels, worth $1.02 Bn, meaning that the average barrel price was rated at $56.

The CBY report also revealed that the government has used most of these returns in financing the imports of oil derivatives for domestic consumption, which reached, according to the report, as of August, $1.275 Bn.

It added that domestic consumption during the period between January and August 2010 amounted to the equivalent of 17 million barrels.

The report said that the total incorporated budget for commercial and Islamic banks has decreased at the end of August by 82.5 billion riyals, by 4.3%, valued at only 1.82 trillion riyals. The overall incorporated budget for this banking sector has been set at 1.58 trillion riyals end of August 2009.

In relation to the money supply, the report mentioned that it has witnessed a decline of 44 billion, by 2.8% than the previous month.

At the end of July, net national income was 2.25 trillion riyals, while in August it went down to 2.204 trillion riyals. The report attributed the decline in the money supply to the change in the net foreign assets of the banking system and the demands of the governmental sector.

As for the exchange rate, it has also witnessed a decline at the end of August, where the exchange rate stood at 214.90 YR to US$1, after they both had witnessed a continuous rise during the past period. The stabilization of the exchange rate led to stability of the prices of many foodstuffs in the local market as well as stability of prices of steel and wood.

With regards to the general foreign debt, it has risen to 5.96 billion riyals, and the international fund corporations have had the major part of it, where the current account, including late installments for these corporations, has come to $3.169 billion.

The debts offered by the member states of the Paris Club, represented by Russia, Japan, the United States, France, Italy, Spain, Denmark, Holland and Germany, have amounted to $1.75 billion, and the rest of debts were distributed on the funds and the non-member states in the Paris Club.