Remittances of Yemeni expatriates exceeded $7 billion in 2021
English - Thursday 22 June 2023 الساعة 05:23 pm
Aden, NewsYemen, exclusive:
The World Bank said that remittances of Yemeni expatriates abroad exceeded $7 billion in 2021, covering the gap in financing imports, and replacing hydrocarbon exports as the main source of foreign currency in Yemen.
According to the "The Future: A Glimpse of Hope in Dark Times" report, the Yemeni import bill has risen steadily over the course of the conflict. According to official estimates, the value of Yemen's import bill from abroad reached $9.2 billion in 2021, with food and fuel accounting for 65 percent.
The World Bank report said key interviews with informants indicated that dollars used to pay for imports of basic commodities, including food and fuel, were obtained from remittances from organizations, companies, migrant workers and expatriates.
He added that official government figures show that $1.2 billion in oil export revenues for 2021, much of this amount was used to cover external operating costs and finance fuel imports for electricity production.
He indicated that the Central Bank of Yemen - Aden provided nearly $110 million in foreign exchange to the open market over the course of nine auctions during 2021.
According to a World Bank report, the average official development assistance to Yemen amounted to about $2.9 billion annually between 2015 and 2021, about 40 percent of which is about $1.2 billion to cover the government's operating expenses.
The World Bank emphasized that remittances are still essential for macroeconomic stability, as they play, along with official development assistance, a vital role in financing imports and preventing further currency depreciation.
Expatriate remittances were characterized as the least sources of foreign exchange affected by the war and conflict cycles in Yemen, which confirms that remittances represent a vital source of income for thousands of families across Yemen, and that they have a direct impact on alleviating poverty.
The report indicated that remittances are a subject of competition between the Houthis and the legitimate government, and remittance payments are not distributed equally among the population, as a large percentage of the money transferred flows to families in the densely populated northwestern governorates controlled by the Houthis.
According to the World Bank, the legitimate government has repeatedly tried to assert its authority over money transfer and banking services, monitoring and direct flows through the government-affiliated Central Bank of Yemen in Aden, albeit with mixed results.
