Aden-Based Central Bank Seeks to Launch Economic, Banking Reforms
Aden-based Central Bank of Yemen began yesterday by discussing economic reforms and the development of the country's financial and monetary sectors in a meeting with the International Monetary Fund.
The five-day meeting, which began on Sunday, will discuss several aspects related to economic developments, financial and monetary policies, and current challenges in light of the difficult conditions the country is experiencing as a result of the continuing war.
The two sides reviewed enhancing state resources, especially non-oil resources in the government-controlled territories, stabilizing the national economy, alleviating human suffering, providing basic services to citizens, and developing the capabilities of the financial and monetary sectors.
The Central Bank said on its website yesterday that it began the procedures for activating the International Bank Account Number "IBAN" and discussed its activation plan with the banks. The IBAN is characterized by the accuracy and speed of money transfers at a lower cost, which will reduce delays in implementing online payments. The IBAN aims to maximize Yemeni banks' financial and banking performance globally.
Ahmed Al-Maqbi, the Governor of the Aden-based Central Bank, urged all banks in Houthi-controlled provinces to commit to moving their operations centers from Sanaa to Aden without delay.
He warned that measures will be taken against banks if they do not shift their centers from Sanaa to Aden.
On April 4, the Aden-based Central Bank ordered all commercial and microfinance banks operating in Houtho-controlled Sanaa to move to Aden in two months. The Central Bank said it would apply legal procedures in accordance with money laundering and terror financing law against any bank that disregards the order. This decision was taken in response to the Houthi issuance of a new metal currency on Saturday, March 30.
The Houthi group called on Saudi Arabia to intervene and stop implementing such a decision.
Economic researchers said such a decision, if implemented, would constitute a strong blow to the Houthi monetary system, and the banks would find themselves facing two options: Either move their operations centers to Aden or keep their centers in Sanaa and face bankruptcy.
As the economic war between the Yemeni government and the Houthi group escalates, civilians in Yemen fear that the conflict between the two central banks in Sanaa and Aden will deepen their suffering and make money transfers between Yemen's North and South harder or more costly.
