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Yemen Central Bank Acts to Stop Currency Collapse, Money Laundering

Central Bank of Yemen in Aden(Saba News Agency)
Central Bank of Yemen in Aden(Saba News Agency)
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Yemen Central Bank Acts to Stop Currency Collapse, Money Laundering

Central Bank of Yemen in Aden(Saba News Agency)
Central Bank of Yemen in Aden(Saba News Agency)

The Central Bank of Yemen is taking action to address the plummeting value of the Yemeni rial and combat financial crimes. This follows the second installment of a $250 million grant from Saudi Arabia to the Yemeni government.

Despite previous efforts to stabilize the exchange rate through regular currency auctions, disruptions in oil exports due to Houthi attacks on ports have caused the rial to drop.

According to banking insiders who spoke with Asharq Al-Awsat, the second installment of Saudi aid is helping the Central Bank manage currency markets and stabilize the Yemeni rial’s exchange rate, which has been declining due to halted oil exports.

The Central Bank’s decision to auction $60 million this week is seen as a key move to halt the rial’s slide.

Since the appointment of new Prime Minister Ahmed Awad bin Mubarak, the local currency has been fluctuating.

Government-controlled exchange markets have been unstable due to irregular salary payments in recent months.

Currency exchange shops reported 1622 rials per dollar on Monday, according to traders who spoke to Asharq Al-Awsat.

At the same time, in efforts to control the banking sector and fight money laundering, the Central Bank of Yemen has received support from the Public Funds Court in Aden, Yemen’s interim capital.

This support backs the Central Bank’s requests for access to all banking transaction data from some commercial banks.

Additionally, these banks are required to provide all necessary information to the Anti-Money Laundering Unit for transaction verification. Two commercial banks have been found guilty of breaking the law.

Official sources report that the Public Funds Court in Aden has convicted Yemen International Bank. The bank was found guilty of failing to adhere to anti-money laundering and terrorism financing laws.

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Arab World

UN Appeal for Aid to Support 10 Million Yemenis

 In Yemen around 3.3 million IDPs are living in family hosting arrangements and rental accommodation (UN)
 In Yemen around 3.3 million IDPs are living in family hosting arrangements and rental accommodation (UN)
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UN Appeal for Aid to Support 10 Million Yemenis

 In Yemen around 3.3 million IDPs are living in family hosting arrangements and rental accommodation (UN)
 In Yemen around 3.3 million IDPs are living in family hosting arrangements and rental accommodation (UN)

The United Nations and partners launched last week the 2025 Yemen Humanitarian Needs and Response Plan, seeking urgent humanitarian and protection assistance to more than 10 million Yemenis in need.
In its plan, the UN warned that more than half of the country’s population – 19.5 million people – needs humanitarian assistance and protection services.
The collapse of the Yemeni riyal, now trading at over 2,160 riyals per US dollar in the legitimate government-controlled areas, has significantly worsened living conditions for Yemenis and left authorities struggling to pay public sector salaries for the past four months.
Yemen’s financial crisis further worsened after the Houthi militia suspended oil exports, causing an electricity blackout in Aden, the country's temporary capital, for more than half a day.
In its Yemen Humanitarian Needs and Response Plan, the UN appealed for $2.47 billion to provide urgent humanitarian and protection assistance to more than 19.5 million people in need.
Under the 2025 appeal, humanitarians aim to deliver life-saving assistance to 10.5 million of the most vulnerable people in need, Humanitarian Coordinator in Yemen, Julien Harneis, said.
Despite significant challenges, Harneis said 197 aid organizations reached more than 8 million people with life-saving assistance last year – two-thirds of which were local Yemeni organizations.
This was made possible by the sustained support of donors, who contributed more than $1.4 billion to the 2024 Humanitarian Response Plan.
The Humanitarian Coordinator said much more is needed this year to reduce needs, achieve peace, revive the economy and build the resilience of communities through sustainable development activities.
He noted that climate shocks, increased regional tensions and chronic underfunding of critical humanitarian sectors are further worsening people’s vulnerability and suffering.
This year, more than 17 million people will experience acute food insecurity—almost half the country’s population—with 5 million expected to experience emergency levels of food insecurity.
Moreover, 13.6 million people face challenges to access a water source of sufficient quality to prevent diseases while 40% of Yemen's health facilities are partially functioning or completely out-of-service due to shortages in staff, funding, electricity, medicines and equipment, and infrastructure integrity.
The UN last year requested $2.7 billion for a humanitarian response plan, but received only meager pledges, causing a huge gap in meeting the needs of the targeted population.
Jamal Belfaqih, head of Yemen's Supreme Relief Committee, confirms the numbers of humanitarian needs declared by the United Nations, its agencies and international organizations.
However, Belfaqih said the appeal that agencies request fail to meet their efforts to secure funding.
Also, he said, the UN and its agencies face challenges to reach the targeted population due to a lack of information and demographic changes caused by internal displacement.
Speaking to Asharq Al-Awsat, Belfaqih said the funds required from donors to finance the humanitarian response plan will probably not be obtained due to a poor promotion of the humanitarian crisis in Yemen.
“The relief organizations have not changed their response plan methods since 2015, despite their failure to meet the needs of the Yemenis and to end or reduce the humanitarian crisis,” he said.
In 2025, an estimated 19.5 million people across Yemen need humanitarian assistance and protection services – 1.3 million people more than last year.
An estimated 4.8 million people, most of whom are women and children, remain internally displaced, with repeated displacement trapping families in cycles of dependency on humanitarian assistance.
In a briefing to the Security Council on the humanitarian situation in Yemen, Joyce Msuya, Assistant Secretary-General for Humanitarian Affairs, said people in Yemen continue to face a severe humanitarian and protection crisis.
Almost half of Yemen’s population – over 17 million people – is unable to meet their basic food needs.
The most marginalized, including women and girls, those displaced and communities such as the Muhamasheen, are the worst affected.
Msuya said almost half of all children under the age of 5 suffer from moderate to severe stunting caused by malnutrition, while cholera is at appalling levels.