Riyadh: A peace deal, signed by Yemen’s internationally recognised government and the Southern Transitional Council (STC) this week, will inject fresh vigour into the country’s war-battered economy, Governor of Yemen’s Central Bank Ahmad Fadhli said in remarks published on Thursday.
The Saudi-brokered pact, signed in Riyadh on Tuesday, ends a months-long feud between the government and the STC.
The deal, officially called the “Riyadh Agreement”, includes forming a 24-strong government equally composed from Yemen’s southern and northern provinces, excluding Iran-allied militia Al Houthis. It also provides for the return of the government to Yemen’s southern city of Aden, which the pro-STC forces seized from the government troops in August.
“The document stresses political and security stability, which if fulfilled, will improve the economy,” Al Fadhli told Saudi newspaper Asharq Al Awsat.
“Resuming liquefied gas exports and increasing oil production will reflect positively on the national economy, especially as gas and oil provide around 80 per cent of Yemen’s revenues,” he added.
“The agreement has economic implications and specifies responsibilities for the Central Bank,” he added.
The deal provides for transferring all revenues to the Central Bank provisionally headquartered in Aden.
“Revenues will be collected in the liberated provinces and handed over to the Central bank as an initial step. Expenses will be allocated according to the public budget with relevant regular reports from the House of Deputies [parliament],” Fadhli said.
Yemen’s budget for the current fiscal year has an estimated deficit of about 2 billion dollars.