Yemen Monitor/News Room
On Tuesday, the Central Bank of Yemen (CBY) in the temporary capital Aden issued a decision calling on local and foreign commercial banks and Islamic banks to relocate their headquarters from Sana’a (under Houthi control) to Aden within 60 days.
The CBY confirmed in its statement that it would take legal action against any bank or financial institution that violates this directive according to the provisions of the Anti-Money Laundering and Combating the Financing of Terrorism Law, according to the official Yemeni News Agency.
In its preamble, the CBY explained that the decision came in light of the illegal measures taken against banks and financial institutions operating in the Republic of Yemen by the Houthi group, which is classified as a terrorist organization. Additionally, the group has issued illegal currencies, disrupting the financial and banking system in the country, preventing banks and financial institutions from dealing with the national currency, and issuing illegal legislation.
The CBY indicated that these measures taken by a group classified as a terrorist entity are likely to “expose banks and financial institutions to the risk of freezing their accounts and stopping their dealings abroad.”
On Saturday, the Houthi-controlled Sana’a branch of the CBY announced the issuance of a new 100-riyal coin to address the liquidity crisis, in a move that the CBY in Aden considered a serious and illegal escalation, warning against its circulation and holding the Houthis responsible.
Observers and economic experts believe that the Houthis’ actions will deepen the economic division in the country and represent a step towards building a fully independent economy
