Barran Press
The Central Bank of Yemen, headquartered in the temporary capital of Aden, has revoked the licenses of six local banks for failing to comply with a directive to relocate their main headquarters to the city.
According to a leaked copy of the Central Bank's decision obtained by "Barran Press," the affected banks are: Al-Kereem Bank, Al-Tadhamun Bank, Yemen and Kuwait Bank, Al-Amal Bank for Microfinance, Yemen and Bahrain Comprehensive Bank, and Yemen International Bank.
The decision exempts branches of the affected banks located in areas under the control of the internationally recognized Yemeni government. These branches will continue to operate "until further notice."
This move comes just two days after Houthi leader Abdul-Malik al-Houthi, whose group is designated as a terrorist organization by several countries, threatened to target Saudi Arabia if the Central Bank's decisions were not reversed. This, according to observers, underscores the Central Bank's independence from international or regional influences.
On May 30, the Central Bank in Aden issued a decision to suspend dealings with six Yemeni banks after a 60-day deadline for them to relocate their headquarters to Aden expired.
Simultaneously, the bank issued another order urging individuals, businesses, companies, other entities, and financial and banking institutions holding old banknotes from before 2016 to deposit them within 60 days of the announcement.
The Central Bank has continued to take measures to counter the economic policies implemented by the Houthi group against the banking sector. These policies have cast a shadow over the economic situation, causing the Yemeni rial to depreciate in areas under the government's control.
Last week, Governor Ahmed Al-Ma'abqi issued decisions revoking the licenses of 15 exchange companies and ordering the indefinite closure of their branches for violating bank regulations and directives.
These decisions follow previous measures, including the imposition of a unified domestic transfer network, the prohibition of dealings with 12 unlicensed electronic payment entities, and the permanent cessation of operations in domestic money transfer networks owned by banks, financial institutions, or exchange companies operating in Yemen.