Saudi King allocates $200M in to Yemeni central bank - reports

Saudi King Salman bin Abdulaziz Al Saud. /Internet photo

DOHA (Sputnik) - Saudi King Salman bin Abdulaziz Al Saud has ordered that a donation of $200 million should be allocated to the Central Bank of Yemen to support the country's economy against the backdrop of the collapse of the Yemeni national currency provoked by ongoing military action, Saudi media reported Tuesday.

According to the Saudi Press Agency (SPA), the new contribution would complement $3 billion earlier deposited into the Yemeni Central Bank.

Saudi authorities expect the donation to alleviate the economic burden of the Yemeni people, the news outlet added.

The Yemeni rial recently lost half its value in comparison to pre-war figures, which has resulted in a sharp increase in prices of goods and services. At present the official rate of exchange is over 250 Yemeni rials to one US dollar.

Yemen has been engulfed in an armed conflict between government forces led by President Abd Rabbuh Mansour Hadi and the Houthi rebels for several years. A Saudi-led coalition has been carrying out airstrikes against the Houthis at Hadi's request since March 2015.