The Central Bank in Sanaa (Getty Images)

CBY Governor: The Truce Deprived the Government of 1.5 Trillion Riyals


Sat, 26-08-2023 01:41 PM, Aden

Aden (South24) 

The Governor of the Central Bank of Yemen (CBY), Ahmed Al-Maabqi, said on Friday that the UN-brokered truce in Yemen deprived the internationally recognized government of 1.5 trillion Yemeni riyals, which is the revenues of the Houthi-controlled port of Hodeidah. 

Al-Maabqi said, in statements to the Adeni newspaper Al-Ayyam, that the Houthis have obtained revenues from the port of Hodeidah worth 1.5 trillion Yemeni riyals during the last period from taxes and customs of oil ships.

The truce, which began in April 2022 and officially ended in October 2022, was followed by a "de-escalation" period that preserved the privileges and concessions obtained by the Houthis, including the expansion of the activity of the port of Hodeidah.

Maritime routes to the port located in the Red Sea increased at the expense of government ports, especially the strategic port of Aden. Earlier reports of "South24 Center" showed the size of the decline in numbers.

Al-Maabqi criticized the Yemeni government's expenditures during the last period, adding that the difference between the price of the Yemeni riyal in Sanaa and Aden was caused by "excessive withdrawal that was used in the past to finance government expenditures without restrictions."

Al-Maabqi said that the printing of large amounts of Yemeni currency "created large withdrawals outside the banking system, which allowed currency speculation."

Al-Maabqi denied that the economic situation in the Houthi-controlled areas is better than the government areas. He claimed that the stability of the Yemeni riyal in the Houthi areas was "imaginary, given the scarcity of withdrawal there."

Al-Maabqi revealed that the CBY has used only $150 million dollars of recent Saudi and Emirati financial deposits. He pointed out that there are conditions and restrictions on the use of these deposits.

"Deposits and grants cannot build a country or depend on it, nor can they compensate for sustainable resources," he added. Al-Maabqi indicated that oil production continued to be suspended due to the Houthi attacks against South.

Al-Maabqi claimed that the Yemeni government's revenues now "do not cover 40% of their salaries, with or without oil." He said the CBY saved 900 billion Yemeni riyals last year from foreign reserves and public debt instruments.

Al-Maabqi criticized the government's policy towards the electricity file. He called for leaving this service sector to the private commercial sector, and raising the price of the service for citizens in proportion to the size of the cost of production.

He said that the state produces electricity at more than 400 riyals per kilowatt, while it is sold for only 7 riyals to the citizen.

Al-Maabqi defended the decision to raise the price of the customs dollar at the beginning of this year by 50%, from 500 Yemeni riyals to 750 riyals. He said it was one of the options available to replace lost resources.

Al-Maabqi also justified the failure to supply oil revenues in the governorate of Marib to the CBY in Aden for years and until now, by saying that this was "with a direct mandate from the President and the Prime Minister, given that Marib is a war zone."

He added, "It was recently agreed to form a committee from all sides to go to Marib to discuss the revenues, expenditures, authorizations and all their sources, and to draw the result and submit it to the presidency and the government."

Al-Maabqi statements came in the midst of a major economic and service crisis in government areas, amid the collapse of the Yemeni riyal. Today, the price of the US dollar in the informal trade market reached 1459 for buying.

Yemen is experiencing one of the worst economic and humanitarian crises in the world since the war broke out in 2015, according to the United Nations.

South24 Center

South YemenCentral BankAdenHodeidahMaritime activityRevenuesTruceUN