The Yemeni Presidential Leadership Council has unanimously rejected the resignation of Central Bank Governor Ahmed Ghalib Al-Mabaqi, according to a statement released by the Presidential Office on Tuesday, July 23, 2024. The statement also urged media outlets to handle the sensitive nature of the issue with caution.

The resignation letter obtained by "Barran Press"  came after the internationally recognized Yemeni government reversed recent decisions by the Central Bank aimed at regulating the banking sector and overseeing banks. Al-Mubaiqi had submitted his resignation letter to the Presidential Leadership Council, citing the government's reversal as a reason for his departure.

In his resignation letter, Al-Mubaiqi expressed gratitude for the support he received from the Council during his tenure, highlighting achievements in implementing monetary policies, including the avoidance of inflationary financing to cover the government's growing expenses. He also credited the Council for supporting the Central Bank's efforts to protect the Yemeni banking sector and maintain relations with regional and international financial institutions.

However, the Presidential Leadership Council ultimately persuaded Al-Mubaiqi to withdraw his resignation, stating that he would remain in his position with full support from both the Council and the government. The Council emphasized the need to continue efforts toward comprehensive banking reforms, with support from international partners.

The resignation and subsequent reversal come amid a broader economic crisis in Yemen, exacerbated by the ongoing conflict between the internationally recognized government and the Houthi rebels. The situation has been further complicated by the Houthi's control of key ports and the disruption of trade routes, leading to a decline in the value of the Yemeni rial.

The recent agreement between the Yemeni government and the Houthis, brokered by the United Nations Special Envoy for Yemen, Hans Grundberg, to de-escalate tensions in the banking sector and air travel, offers a glimmer of hope for resolving the economic crisis. The agreement includes the reversal of recent decisions against banks by both parties, the resumption of Yemeni Airways flights between Sana'a and Jordan, and the increase of flights to Cairo and India.

The Yemeni government has welcomed the agreement, citing humanitarian concerns and the need for flexibility in implementing economic and banking reforms. The government also acknowledged the role of the international community in facilitating the agreement.

The situation remains fragile, with the Central Bank's role in navigating the economic crisis and the ongoing conflict continuing to be a major point of contention. The Presidential Leadership Council's decision to retain Al-Mubaiqi signals a commitment to continue reforms, but the success of these efforts will depend on the ability of the government and the Houthis to cooperate and address the underlying economic challenges.