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.



German Foreign Ministry Backs Kurdish Dialogue with Damascus

German Ambassador Tobias Tunkel with the leadership of the Syrian Democratic Forces in Al-Hasakah, northeastern Syria. (SDF)
German Ambassador Tobias Tunkel with the leadership of the Syrian Democratic Forces in Al-Hasakah, northeastern Syria. (SDF)
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German Foreign Ministry Backs Kurdish Dialogue with Damascus

German Ambassador Tobias Tunkel with the leadership of the Syrian Democratic Forces in Al-Hasakah, northeastern Syria. (SDF)
German Ambassador Tobias Tunkel with the leadership of the Syrian Democratic Forces in Al-Hasakah, northeastern Syria. (SDF)

Director of the Middle East and North Africa Department at the German Foreign Ministry Tobias Tunkel said that protecting the rights and interests of Syrian Kurds can be best achieved through an internal dialogue with Damascus.

His statement followed a recent meeting between Tunkel and Mazloum Abdi, commander of the Syrian Democratic Forces (SDF), along with officials from the Kurdish Autonomous Administration in Al-Hasakah, northeastern Syria.

In a tweet on the X platform on Monday, Tunkel shared a photo of his meeting with Abdi. He indicated that they discussed pressing issues that require resolution through direct communication between the SDF leadership and Damascus’ military operations command.

The meeting is part of broader international efforts to stabilize the region, prevent a devastating war involving regional powers, and promote internal Syrian dialogue. The aim is to ensure the inclusion of all parties, social groups, and political forces to achieve security, stability, economic prosperity, and reconstruction.

Abdi stressed the need for all Syrians, regardless of their backgrounds, to have a role in governing their country.

He praised Germany’s support for the SDF, stating on his X account: “Germany’s support for the Syrian people in building their state on the principles of freedom, democracy, and equality, while ensuring the inclusion of all components in governance, is deeply welcomed and appreciated.”

He also commended Germany’s contribution to the international coalition’s operations against ISIS, stressing: “We highly value Germany’s role in supporting our forces in combating terrorism and extremism, which helps pave the way for a brighter future for all Syrians.”

This visit marks the second official engagement by a Western diplomat this week, following the visit of former US Ambassador Robert Ford and his meeting with SDF leaders.

Discussions are focused on achieving a political resolution and determining the future of the SDF, which is a coalition of Arab and Kurdish forces, primarily the Kurdish People’s Protection Units (YPG). The YPG receives military and logistical support from a US-led international coalition and is considered a vital ally in the fight against ISIS by Washington, though Türkiye regards it as a national security threat.

SDF head of Public Relations Sihanouk Dibo described the recent visits by US, German, and French delegations as encouraging. Speaking to Asharq Al-Awsat, he emphasized that the Autonomous Administration values any initiative that supports resolving the Kurdish issue in Syria, which he views as fundamental to addressing regional crises and ensuring stability.

“Germany’s supportive role complements Washington’s exceptional efforts, including the success of General Mazloum Abdi’s initiative and his meeting with (former President of the Kurdistan Region) President Masoud Barzani. This is a significant and positive step,” he added.

Dibo also highlighted the importance of dialogue between Damascus and the SDF leadership to restore Syrian sovereignty and resolve disputes. He called for “the formation of specialized and technical committees to address all issues and differences.”

In a related development, the Autonomous Administration called on the Syrian people, the international community, and humanitarian organizations to take action to curb Turkish aggression and stop attacks by its affiliated factions on Tishrin Dam.

In a statement published on its official platforms, it urged the deployment of international forces to protect the dam, warning of catastrophic consequences should it collapse, including the flooding of large populated areas and the destruction of numerous villages along the riverbanks.