Question to the Department for International Development:

To ask the Secretary of State for International Development, what assessment her Department has made of the effect of the conflict in Yemen on that country's economy; and what steps her Department is taking to support the Yemen economy.

Yemen’s recent economic crisis is one of the biggest risks threatening to tip Yemen into famine, with the Yemeni Riyal losing over 40% of its value between June and October.

The UK’s immediate leadership at the height of the economic crisis in October prevented a worsening of the situation. We worked with the Central Bank of Yemen in releasing $270 million of hard currency, provided by Saudi Arabia, to support importers bringing food staples into the country.

We also successfully pressed for the suspension of unnecessary processes introduced by the Government of Yemen in bringing these goods into the country. This has eased the pressure of price increases and temporarily stabilised the currency - the value of the Riyal has since appreciated, rising from 755 YER per USD to 500 YER per USD.

However, much more remains to be done. The UK is now working with the Government of Yemen to facilitate greater financial transparency, ensure foreign currency is available to commercial importers and rebuild key financial institutions.