Yemenis' Divides Magnify Amid Continued Banking Conflict

The banking conflict in Yemen has been intensifying, sparking popular protests in several Yemeni cities in government-controlled provinces and Houthi-run areas.

Yemeni protestors have raised conflicting demands, showing their divided stances on the ongoing Houthi-government banking dispute.

Today, mass protests took place in Taiz, Marib, and Al-Khokha,  calling on the Aden-based Central Bank of Yemen to stick to its decisions, which have withdrawn licenses from six commercial banks in Houthi-controlled Sanaa.

The demonstrators urged the Yemeni government not to "submit to external pressures".

Today's statement issued by the Taiz protest said, "We categorically reject the pressures of the international community and the Office of the UN Envoy to block the implementation of the procedures of the Central Bank of Yemen in Aden."

In April 2024, the Central Bank in Aden ordered six commercial banks based in Sanaa to relocate their headquarters to Aden. However, the banks failed to do so, prompting the governor of the Central Bank in Aden to withdraw licenses from them. Such a procedure will prevent the banks from receiving or sending money abroad, as their access to the SWIFT system will be suspended.

UN Envoy to Yemen Hans Grundberg sent a letter to the head of Yemen's Presidential Leadership Council, Rashad al-Alimi, requesting the delay in implementing the decision of the Central Bank in Aden. However, multitudes of Yemenis have expressed anger about such a move, saying the UN envoy seeks to rescue the Houthi group and enhance their authority.

Meanwhile, Houthi-controlled Sanaa has seen protests denouncing the decisions of the Central Bank in Aden, saying that such resolutions aim to starve Yemenis and worsen their ordeals. The protestors also called for the cancellation of such decisions and urged the Houthi leadership to follow any procedures to counter the moves of the Aden-based Central Bank.

Economic experts say the Aden-based Central Bank's recent procedures will isolate the banking sector in Houthi-controlled areas, which can deal a massive financial blow to the Houthi group.

Yemeni observers reckon that the government-Houthi banking conflict will likely pave the way to a fresh military battle, which will cause the population in Yemen another cycle of suffering.