The central bank of war-torn Yemen has raised interest rates on deposits to an all-time high of 27 percent in a bid to stabilise the plunging riyal that caused food prices to soar. The bank also raised interest rates on government bonds to 17 percent from 12 percent and banned taking out of Yemen more than $10,000 without a prior permit, the official Saba news agency reported.
Previously the interest rate on deposits was 17 percent, according to the Facebook account of the central bank run by the internationally recognised government. The move is aimed at strengthening the riyal and reducing skyrocketing inflation.