The Central Bank of Yemen warns banks and the Yemeni Exchange Company against dealing with the instructions of the Houthi
English - Tuesday 24 December 2019 الساعة 04:02 pm
aden,newsyemen
The Central Bank of Yemen warned from its headquarters in the temporary capital, Aden, the Yemeni banks and exchange company against dealing with the instructions of the Houthi militia, which is to prevent the circulation of the national currency "the new edition" by taking measures and penalties against it in accordance with the law.
In a circular addressed to all banks and exchange companies operating in Yemen, the Central Bank stressed compliance with the laws in force and instructions issued by the Central Bank regarding combating money laundering and terrorist financing and the regulatory rules for providing electronic money service.
The Houthi militia issued a decision, last week, prohibiting the circulation of local currency from the "new edition" issued by the Yemeni Central Bank from its headquarters in Aden during the period 2017-2019, and considered by the Houthi militia to be illegal.
The pace of the economic war between the legitimate government and the Houthi militia has increased in the recent period, as fighting has decreased in intensity on the fronts, and the fuel and banking sectors have become an arena for economic warfare between the two parties, in an indication of high food and service prices during the coming months.
In its last update, December 12, the Swiss Capacity Assessment Project organization explained that in the event of an escalation in the economic war between the government and the Houthis in controlling hard currency, the Yemeni central bank in Aden may impose sanctions on banks by isolating them from international contact via the SWIFT system.
The organization said in its report "Reaching basic needs in Yemen" that the escalation in the economic war between the conflicting parties led to a decrease in the value of the local currency, "the riyal", and the rise in prices of fuel, water and food, and doubling the cost of living.
