Yemeni central bank decrease interest by 2%

Yemeni central bank Sanaa – Ali Rabea The Yemeni central bank issued its decree on Wednesday by decreasing the basic interest rate to 18% from 20%. Yemeni officials have said in the highlight of the economic index that this decision is "positive and good" due to the increasing foreign exchange reserve, compared to 2011.
The governor of the central bank, Mohammed Awad Bin Hammam said to the Yemeni official news agency (SABA): "The bank's decision comes amid downturn positive indicators of inflation during the current year, due to the economic stability. This is in comparison with indicators of inflation recorded last year 2011 as well as high reserves of Yemen's foreign exchange of $6 billion and $200 million by the end of September 2012, compared to $4 billion and $ 500 million by the end of 2011."
He also added: “The real interest price is still too high in Yemen, if we took into consideration the recent inflation levels and interest rate in world stock market. The Yemeni central bank’s decision is thus considered an expected step by all banking sectors, as it will work according to the estimations to decrease the financing cost of private sector activity and the economic activity in general."
The central bank governor also confirmed that the back will continue follow up local developments, within effecting finances committed by donors in New York and Riyadh conferences lately, which will refresh the economic activity in Yemen.
Yemeni donors have announced their pledges to support Yemeni economy during the political transitional stage (2012-2014) with total amount $ 8 billion approximately, half of it was carried by Saudi, during the Riyadh and New York conference held in last September.