The Yemeni Central Bank announced on Tuesday, June 11, 2024, that it has temporarily allowed the disbursement of April and May salaries for some government entities and employees, as well as May salaries for certain employees, citing the approaching Eid al-Adha holiday and the need to address employees' circumstances.

In a clarifying statement published on its website, Seen by Barran Press, the Central Bank reiterated that its decision to suspend transactions with six banks, outlined in Circular 20 of 2024, remains in effect. The circular prohibits all banks and exchange companies from engaging in transactions with these suspended institutions.

The statement clarifies that this temporary allowance for salary disbursement is "in consideration of employees' circumstances" and emphasizes that "no other transactions will be conducted with these banks."

The statement further explains that the suspended banks are currently "limited to activities permitted under the decision, which include continuing to serve their clients and fulfilling their obligations."

These obligations, according to the statement, include disbursing April and May salaries for certain government entities that have contracts with these banks and whose employees have completed the process of opening accounts with them since the implementation of the salary digitization process.

The Central Bank justified this temporary allowance by citing the upcoming Eid al-Adha holiday and the time required for transferring salaries under the government's stipulated conditions. The statement also highlights that financial reinforcements were issued in the names of these banks during a critical period that did not allow for necessary arrangements for transfer.

The Yemeni Central Bank issued this clarifying statement to "address inaccurate interpretations and predictions."

On May 30, the Central Bank in Aden declared as the temporary capital of Yemen, issued a decision suspending transactions with six Yemeni banks and financial institutions. This followed the expiration of a 60-day deadline for these institutions to relocate their headquarters to Aden.

The Central Bank also issued a separate decision urging all individuals, businesses, companies, and financial institutions to deposit pre-2016 banknotes of all denominations within 60 days.