The Arab Monetary Fund (AMF) has signed a $1 billion deal to help the Saudi-backed government's economic reform program in Yemen, Reuters reported, citing Saudi state media.

The new package, provided by the Abu Dhabi-based fund, which includes countries from the Middle East and North Africa, will provide support for the Yemeni government's efforts to stabilize the economy for the period 2022-2025, the Saudi Ekhbariya TV reported today.

The war between Iran-linked Houthi rebels and the Saudi-led coalition has brought Yemen's economy to its knees and caused the world's largest humanitarian crisis.

Inflation and foreign currency shortages have made food, water and fuel unaffordable for many in Yemen, which meets most of its needs through imports.

After the Houthis stormed the capital Sanaa in 2014 and overthrew the government, sending it into exile, Yemen's central bank split into two branches - one in Sanaa under Houthi control and an internationally recognized branch in Aden, which is under the control of the Saudi Arabia Govt.

In April, Saudi Arabia announced it would provide $3 billion in aid to the war-torn country's economy after a new presidential council was installed.

It is not clear whether the entire amount has been disbursed.

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