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Yemen's Central Bank Denies Postponement of Saudi Deposit

Yemen's Central Bank Denies Postponement of Saudi Deposit

Saturday, 3 March, 2018 - 11:30
Central Bank of Yemen (CBY) (Reuters)

The Central Bank of Yemen (CBY) denied allegations that Saudi Arabia's $2 billion deposit to shore up Yemen's Riyal has been put off. The bank stated that the rumors "are fabricated news from entities and persons who harbor hatred for the whole Yemeni people." The bank also denied rumors claiming it will move its headquarters to Amman, Jordan.

The CBY said in a statement that "there is a strong keenness to accomplish the administrative and banking arrangements as soon as possible and then the signature will be made within the coming week in the presence of all media outlets interested to attend."

The technical team is about to finish the arrangements for receiving the deposit, the statement added.

Earlier in January, Custodian of Two Holy Mosques King Salman ordered a deposit of $2 billion to be paid into Yemen’s central bank, stressing that it is not a loan.

The bank called on all people including journalists to validate their sources and reports, especially in the economic and banking field, before publishing any news.

The Bank's technical team headed by Deputy of the Central Bank of Yemen for Foreign Relations, Khaled al-Abbadi, the team of the Ministry of Finance and the Saudi Arabian Monetary Agency (SAMA), are close to complete all procedures.

The CBY also denied news that its headquarters will be relocated out of Aden city, saying it is now "operating in an efficient and independent manner."

Earlier, local Yemeni sources reported that "quartet committee" on Yemen intends to move the bank's headquarters to Amman where the new governor, Mohammed Zammam, will manage the bank from there, including the branch controlled by Houthis in Sanaa.

The bank's statement pointed out that Governor Mohammed Mansour held a meeting with Saudi Finance Minister Mohammed al-Jadaan. During the meeting, Jadaan expressed his hope for the speedy completion of the process required for signing next week so that the Saudi Ministry of Finance can quickly provide the determined deposit.

Yemeni President Abed Rabbu Mansour Hadi issued a presidential decree appointing Mohamed Zammam, governor of the Central Bank of Yemen, as successor to Mansr al-Qaiti.

In August 2016, the government ordered the transfer of the Bank's headquarters from Sanaa to Aden, after Houthis exhausted all of Yemen's estimated $5 billion reserves, as well as two trillion Yemeni Riyals.

Since the Houthis coup in September 2014, Yemen’s economy has been taking hits as the value of the riyal fell in exchange of foreign currencies, causing the low purchasing power of citizens, as the group refuses to pay the salaries of employees in its areas for about 17 months.

Last year, the militias rejected a UN proposal suggesting the group hand over the port of Hodeidah to an independent administration that would provide financial revenues to the central bank in Aden in exchange, the legitimacy pledges to pay employees’ salaries in areas under Houthis’ control.

In other news, Yemeni government sources reported on Friday that Prime Minister Ahmed Obeid bin Daghr left Riyadh for Cairo for treatment. After finishing his medical treatment, the PM will return to the temporary capital of Aden to continue the government's tasks of normalizing the situations in liberated areas.

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