Barran Press
Two high-ranking government sources, one from the internationally recognized Yemeni government and another from the Central Bank of Yemen in Aden, have denied reports that President Rashad al-Alimi ordered a rollback of recent decisions by the bank and the Ministries of Transportation and Communications.
These decisions, aimed at rescuing the Yemeni economy from the "chaos of the Houthis," were reported to have been reversed under pressure from Saudi Arabia.
"There is no basis for the claims that President al-Alimi requested the Central Bank and the Ministries of Transportation and Communications to reverse their recent measures," a senior government official told Barran Press, requesting anonymity due to lack of authorization to speak to the media.
A source from the Central Bank expressed surprise at the publication of such information, emphasizing that the bank had previously warned against relying on any information regarding its decisions or instructions except through official channels.
"The decisions taken by the bank or other ministries and institutions are sovereign and will not be reversed," the source stated, adding that the President and members of the Presidential Leadership Council and the government are "committed to implementing all measures necessary to restore normalcy."
The source also expressed surprise at the "involvement of Saudi Arabia in the matter and the claim of pressure on al-Alimi to direct the rollback of decisions," emphasizing that such decisions "cannot be reversed as it would damage the reputation of sovereign institutions and further deteriorate the banking sector."
The reports initially appeared in media outlets close to the Southern Transitional Council, claiming that President al-Alimi had requested the Central Bank in Aden and the Ministries of Transportation and Communications to "retract their recent measures targeting the Houthi economy."
These reports alleged that al-Alimi, "under pressure from Saudi Arabia," ordered the suspension of punitive measures imposed by the Central Bank on commercial banks violating the decision to relocate their headquarters from Sana'a, controlled by the Houthis, to Aden in southern Yemen.
The reports also claimed that the directives included reversing the decision to transfer the assets of Yemenia Airways from Sana'a to Aden, or its foreign accounts, as well as the decision to relocate the headquarters of mobile phone companies from Sana'a to Aden, announced by the Ministry of Communications.
On May 30, 2024, the Central Bank urged all individuals, businesses, companies, other entities, and financial and banking institutions holding pre-2016 banknotes of all denominations to deposit them within a maximum period of 60 days from the date of the announcement.
The Central Bank, in a statement published on its official website and seen by Barran Press, emphasized that "citizens, non-financial institutions, businesses, and other entities that do not have accounts with the Central Bank must deposit their holdings of the specified banknotes at commercial and Islamic banks and their branches across liberated governorates."
The Central Bank also issued Decision No. 20 of 2024, suspending dealings with six Yemeni banks and financial institutions after the expiration of the 60-day deadline for implementing its decision to relocate their main headquarters to Aden. These banks include Al-Tadamon Bank, Yemen Kuwait Bank, Yemen and Bahrain Comprehensive Bank, Amal Bank for Microfinance, Al-Kremi Bank for Islamic Microfinance, and Yemen International Bank.
In early April, the Central Bank of Yemen in Aden, declared the temporary capital of the country (southern Yemen), issued a decision obligating commercial banks, Islamic banks, and microfinance banks to relocate their main headquarters from Sana'a to Aden within a maximum period of 60 days.
The Central Bank, in the justifications for the decision, threatened to take all legal measures against banks that fail to implement the decision "in accordance with the provisions of the Anti-Money Laundering and Terrorist Financing Law and its executive regulations."
Last week, the Central Bank continued its measures to tighten the financial noose on the Houthi group, internationally listed as a terrorist organization. In a decision issued on Friday, the bank revoked the licenses of three exchange companies and ordered the closure of their branches indefinitely for violating the bank's decisions and instructions.
This decision came after two previous decisions, imposing a unified network for domestic transfers, banning dealings with 12 unauthorized electronic payment entities, and permanently halting operations in local financial transfer networks owned by banks, financial institutions, or exchange companies operating in Yemen.