A shortage of US dollars is making letters of credit (L/Cs) harder to come by in Yemen.

The L/C shortage is in turn slowing down ship container trade in the country as it struggles to cope with popular protests and a Yemen-based Al-Qaeda wing.

Shipping secure

There are no disruptions to seaborne activity as a direct result of unrest in Yemen, which relies heavily on the Port of Aden and busy sea lanes.

But according to port development adviser to the Port of Aden, Roy Facey, the pace of box consignments going through the Aden Container Terminal and the neighbouring terminal at Ma'alla is slowing down.

Dollar shortage

"The traffic volumes are lower because of the shortage of US dollars in the banks for traders to purchase goods from outside," he told Reuters.

He also told the news agency that the lack of US dollars in the local market "causes serious problems for traders in opening L/Cs."

Civil unrest

Opponents of President Ali Abdullah Saleh set a two-week deadline for the Yemeni leader to step down and rejected an offer for talks mediated by neighbouring countries to find a solution to the popular uprising in the world's poorest country.

Neighbouring Saudi Arabia and its allies in the Gulf and in the west are concerned that an active Yemen-based al Qaeda wing could benefit from continued civil disturbances.

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