Barran Press
The UN Special Envoy for Yemen, Hans Grundberg, has urged the Presidential Leadership Council (PLC) to postpone the implementation of recent decisions by the Yemeni Central Bank, according to a letter obtained by Barran Press. The letter, dated July 10, 2024, specifically addresses the Central Bank's decision to suspend licenses of six banks that failed to relocate their headquarters to Aden, the temporary capital of Yemen.
Grundberg expressed concern over the decision, which he believes will hinder the banks' access to correspondent banks and the SWIFT system. He acknowledged the economic hardships faced by the Yemeni government, particularly the halt in crude oil exports, but argued that the recent bank decisions will harm the Yemeni economy and ordinary citizens across the country. He warned that the move could escalate tensions and potentially lead to military escalation.
To mitigate the potential economic damage and prevent further escalation, Grundberg urged the Yemeni government and the Central Bank to delay the implementation of the decisions until at least the end of August. He also requested that the PLC inform correspondent banks and SWIFT about the postponement and instruct them to refrain from taking any action that could negatively impact the six banks.
Grundberg proposed a UN-sponsored dialogue between Yemeni parties to address the recent economic developments. He emphasized that the dialogue should aim to find solutions that benefit all Yemenis and align with the commitments made by the parties. His office will provide further details, including the agenda, to relevant stakeholders within the Yemeni government and the Central Bank.
Grundberg expressed hope for the PLC's full support in facilitating this dialogue, believing it is in the best interest of all Yemenis and crucial for maintaining the roadmap. He also stated that he is engaging with the Houthis to secure their commitment to the dialogue.
In response to Grundberg's letter, the PLC convened an emergency meeting to discuss the matter. The PLC affirmed its commitment to participating in any dialogue on economic issues but outlined specific conditions for its participation. These conditions include the resumption of oil exports, the unification of the national currency, and the reversal of all coercive measures against the banking sector, and the business community.
The Central Bank, under Governor Ahmed Al-Ma'abqi, has taken several measures in recent months, including revoking the licenses of 26 exchange companies in late June and ordering the closure of their branches indefinitely for violating bank regulations. These decisions followed earlier measures, including the imposition of a unified network for domestic transfers, the prohibition of transactions with 12 unauthorized electronic payment entities, and the complete cessation of operations for domestic money transfer networks owned by banks, exchange companies, and financial institutions operating in Yemen.
In late May, the Central Bank in Aden issued a decision suspending transactions with six Yemeni banks after the expiration of a 60-day deadline for them to relocate their headquarters to Aden. The bank also issued another decision urging individuals, businesses, companies, financial institutions, and banks holding old banknotes from before 2016 to deposit them within 60 days of the announcement.