Aden-Based Central Bank Prohibits Transactions With Sanaa-Headquartered Banks

Sheba Intelligence | 2024-05-30 06:24 PM UTC


The Aden-based Central Bank of Yemen suspended transactions with some banks in North Yemen after the expiration of the two-month deadline to move their headquarters from Sanaa to Aden.

Today, the Governor of the Central Bank in Aden issued a decree prohibiting transactions with six banks in Houthi-controlled Sanaa, saying he took this action after the six banks failed to relocate their headquarters from Sanaa to Aden.

In early April this year, the Central Bank in Aden ordered all commercial and microfinance banks to move their operation headquarters from Sanaa to Aden, a move aimed at “combating money laundering and terrorist financing.”

However, the banks did not adhere to the orders. The banks are Al-Tadhamon Bank, Yemen-Kuwait Bank, Shamil Bank of Kuwait and Bahrain, Al-Amal Microfinance, Al-Kuraimi Islamic Microfinance, and International Bank of Yemen.

As the Central Bank in Aden bans transactions with banks in Sanaa, the economic war between the Houthis and the Yemeni government has entered a new phase of complexity.

The Central Bank also called on citizens, companies, shops, and banking and financial institutions to hand over old bills to commercial and Islamic banks in Houthi-free areas. The Bank gave a 60-day deadline for handing over old banknotes.

Abdulmalik al-Houthi, the Houthi movement chief, warned today “the Saudis and the Americans” regarding pressure on the Yemeni banks in Sanaa. He considered such a step an “aggressive and dangerous game”.

He added, “The pressure on the banks in Sanaa comes as part of the American steps in support of the Israeli entity, and the Americans are trying to implicate Saudi Arabia in putting pressure on the banks in Sanaa.”

While some experts say banning transactions with the banks in the Houthi-controlled Sanaa will weaken the Houthi economic power, others warn that such a move will bring more ordeals to civilians in Yemen and heighten their suffering.