Barran Press
A protest took place in Aden, Yemen's temporary capital, on Thursday, July 25, 2024, in front of the Central Bank of Yemen headquarters. The protest condemned the rollback of recent decisions aimed at regulating the banking sector, according to a Barran Press correspondent.
The demonstration, organized by unions representing employees of the Central Bank's main branch in Aden and the National Bank, saw protesters issue a statement expressing their disappointment. They argued that the public had high hopes for these decisions, believing they would contribute to improving the challenging economic and living conditions.
The statement accused the Presidential Leadership Council and the government of succumbing to international pressure and abandoning the implementation of these reforms.
Protesters also condemned and denounced the rollback, rejecting the UN envoy's interference in the Central Bank. They viewed this interference as an infringement on Yemen's sovereignty and a move that benefits the Houthi group, internationally designated as a terrorist organization.
The protesters demanded that Central Bank Governor Ahmed Al-Ma'bqi implement his decisions and take further measures to improve the economic and living conditions of the citizens, whose suffering has intensified due to the ongoing depreciation of the local currency.
They highlighted the objectives of the decisions, which aimed to address financial and banking imbalances, combat money laundering and terrorist financing, and counter the Houthis' efforts to undermine the banking sector and exploit it for their own agenda. The Houthis have sought to control national financial and economic resources to advance their terrorist goals.
On Tuesday, July 23, the office of the UN Special Envoy for Yemen, Hans Grundberg, announced an agreement between the internationally recognized Yemeni government and the Houthi group on several measures to de-escalate tensions regarding the banking sector and Yemenia Airlines.
Grundberg's office stated that it had received written confirmation from both parties, outlining an agreement to "cancel recent decisions and actions against banks from both sides and refrain from any similar decisions or actions in the future."
The agreement also included the resumption of Yemenia flights between Sana'a and Jordan, with an increase in the number of flights to three daily, and the introduction of daily flights to Cairo and India, or as needed.
The agreement also stipulated that meetings would be held to address administrative, technical, and financial challenges faced by the airline. Meetings would also be initiated to discuss all economic and humanitarian issues based on a roadmap. Both parties requested UN support in implementing the agreed-upon measures.
Grundberg acknowledged the crucial role played by Saudi Arabia in reaching this agreement. He emphasized the UN's readiness to work with both parties to implement the agreed-upon measures and offered to facilitate communication with authorities in Jordan, Egypt, and India.
The UN envoy stressed the need for cooperation between the parties to achieve an economy that serves all Yemenis and supports the implementation of a nationwide ceasefire and the resumption of an inclusive political process.
The internationally recognized Yemeni government welcomed the announcement made by the UN Special Envoy on Tuesday, July 23, regarding the "cancellation of recent decisions against a number of banks and the banking sector, the resumption of air travel through Sana'a International Airport, and the facilitation of travel to other destinations as needed."
In a statement published by the official Yemeni news agency Saba, the government outlined the reasons for its welcome. It stated that its decision to back down was "in consideration of the difficult humanitarian conditions faced by the Yemeni people, especially in areas under the control of the Houthi group, internationally designated as a terrorist organization."
The government explained that its decision was also driven by "the principle of flexibility in enforcing comprehensive economic and banking reforms, in response to the appeal of the national business community, and the efforts of international and regional mediation."
Central Bank Governor Al-Ma'bqi had previously insisted on his recent decisions regarding the regulation of the banking sector and oversight of the bank, refusing to back down despite significant pressure. He had threatened to resign if the government reversed its decisions, which ultimately led to his resignation.
On May 30, the Central Bank of Yemen issued a decision to suspend dealings with six Yemeni banks and financial institutions after a 60-day deadline for them to relocate their headquarters to Aden expired.
Simultaneously, the bank issued another decision urging 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 continued its efforts to counter the economic measures taken by the Houthi group, internationally designated as a terrorist organization, against the banking sector. These measures had cast a shadow over the economic situation and led to a decline in the value of the Yemeni rial in government-controlled areas. The bank faced subsequent international and UN pressure to reverse its decisions, which sparked public anger in Yemen as it was perceived as a "rescue" of the Houthi group.