CBY leadership meeting PM Maeen Abdulmalik in Aden. May 13, 2023 (Saba)

The Central Bank of Yemen: The Houthis are Destructing the Economy


Sun, 14-05-2023 02:49 PM, Aden

Aden (South24)

Yesterday, the Central Bank of Yemen's (CBY) leadership in Aden accused the Iranian-backed Houthis of working to "destruct the Yemeni economy."

In a meeting that included Prime Minister Maeen Abdulmalik, the governor of the CBY Ahmed Ghaleb attacked the monetary and banking measures taken by the Houthis.

Ghaleb said that the Houthis are carrying out "destructive and illegal measures in the financial and banking sector in their areas of control."

According to the official Saba news agency, the meeting discussed "the CBY plans to deal with the Houthi actions and to take national, regional and international legal measures against any institution or entity that deal with the Houthis."

The agency indicated that "the meeting touched on plans to deal with the decline in public revenues in light of the Houthi militia's targeting of crude oil export ports."

In early May, the Houthis passed a law raising the minimum capital required to conduct exchange business to 1.2 billion Yemeni riyals.

The decision issued by the Central Bank in Sanaa gives exchange facilities 8 months to raise the capital to the new minimum.

This measure is added to a number of economic, financial and monetary measures of the Houthis in the areas of North Yemen that they control.

The group faces accusations of embezzling public and private funds and passing economic laws of a religious nature.

On March 23, the Houthis issued a law "preventing usurious transactions", which prohibits monthly interest from bank deposits.

The group has also implemented a law for years that grants the dynasty to which Abdulmalik Al-Houthi belongs 20% of the revenues in its areas.

On the other hand, the Houthis accuse the internationally recognized legitimate government of corruption and printing trillions of local currency without cash cover.

At the beginning of 2020, the Houthis prevented the circulation of new editions of the Yemeni riyal in their regions. The move caused a gap in the price of the local currency between Sanaa and Aden, which exceeded 50%.

In a report by "South24 Center", experts warned of the dangers of merging with the Houthi economy on South Yemen and the internationally recognized government.

South24 Center

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