Barran Press
A trade union affiliated with the Southern Transitional Council, known as the "Southern Exchange Union," announced its intention to establish a parallel remittance network called "Unified Southern Network." This move comes as a direct challenge to the unified network established by the Central Bank of Yemen.
In a letter addressed to Aden Governor Ahmed Lamlas, the union justified its request for a parallel network by emphasizing the need to "ensure the continuity of financial remittance flow and address any potential disruptions."
The union's letter, seen by "Barran Press," highlighted its commitment to supporting the Central Bank's efforts by creating a new digital financial remittance network named "Unified Southern Network." The union stated its aim to expand the network's reach to include all licensed exchange bureaus, fostering competition in the banking sector by offering affordable and high-quality remittance services.
The union requested authorization to establish the "Unified Southern Network" to promote competition within the banking market, assuring its commitment to collaborating with the Central Bank and other relevant authorities to ensure exchange rate stability and foster a favorable economic environment for growth and development.
In February, the Central Bank of Yemen, headquartered in the temporary capital of Aden, established the "Unified Network for Financial Transfers" (UNMONEY) to regulate financial transactions. All commercial banks and exchange companies were mandated to utilize this network.
On June 26, the Central Bank of Yemen in Aden enforced a complete halt to all domestic remittance networks, obligating exchange companies and institutions to exclusively utilize the unified network for financial transfers, which is under the Central Bank's control.
The decision, issued by the Central Bank Governor Ahmed Ghaleb Al-Maabqi, mandated the complete and permanent cessation of all domestic remittance networks owned by banks, financial institutions, or exchange companies operating in Yemen.
The decision urged banks, financial institutions, and exchange companies to settle outstanding transactions within their respective remittance networks within 15 days and submit a report within 20 days regarding outstanding unpaid remittances not delivered to their recipients.
The Central Bank prohibited all domestic financial transactions conducted in cash, both for sending and receiving, through any other means or method, with the exception of licensed electronic wallets and payment service providers within approved limits, as per the regulations governing such services.
This development signifies a growing rift in Yemen's financial landscape, with the Southern Transitional Council seeking to establish its own financial infrastructure, potentially further complicating the already fragile economic situation in the country.