Yemen's Houthis Ask Saudi Arabia to Stop Aden-Based Central Bank's Escalatory Steps

The Ansar Allah (Houthi) group has sought Saudi intervention to reverse a decision that the Aden-based Central Bank of Yemen took on Tuesday, April 2.

Aden-based Central Bank ordered all banks operating in Houtho-controlled Sanaa to move to Aden in two months. The Central Bank will apply legal procedures in accordance with money laundering and terror financing law against any bank disregarding the order. This decision was taken in response to the Houthi issuance of a new metal currency on Saturday, March 30.

With the conflict escalating between the Houthi-controlled Central Bank in Sanaa and the government-controlled Central Bank in Aden, the Houthi group urges Saudi to step in.

Abdul Malik Al-Ajri, a senior Houthi leader and member of the Houthi negotiating team, said, "The parties keen on peace and the roadmap, especially the Kingdom of Saudi Arabia as the main party in [peace talks], must put an end to the [resolution taken by the Central Bank in Aden.]"

Al-Ajri added that this decision comes "as part of other escalatory steps with clear American push, the aim of which is to put pressure on Sanaa for its position on the [Israeli war] on Gaza..."

Deputy Foreign Minister in the Houthi government, Hussein Al-Ezzi, described the Aden-based Central Bank's decision as "an unjustified escalation". Al-Ezzi called on Saudi Arabia to intervene and reverse such a decision. He added, "We expect Riyadh to put an end to this [escalation]."

 Economic researchers in Yemen say the Aden-based Central Bank's decision aims to monitor the banking sector and increase its ability to control the monetary mass and the money supply.

The decision constitutes a strong blow to the Houthi monetary system, and these banks will find themselves facing two options: Either move their operations centers to Aden or keep their centers in Sanaa and face bankruptcy.

However, civilians in Yemen fear that the escalating conflict between the two central banks will deepen their suffering and make money transfers between Yemen's North and South harder or more costly.