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.



Israel Flattens Rafah Ruins; Gazans Fear Plan to Herd Them There 

Displaced Palestinians fleeing Rafah amid ongoing Israeli military operations arrive in Khan Younis, in the southern Gaza Strip, Sunday, March 23, 2025. (AP)
Displaced Palestinians fleeing Rafah amid ongoing Israeli military operations arrive in Khan Younis, in the southern Gaza Strip, Sunday, March 23, 2025. (AP)
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Israel Flattens Rafah Ruins; Gazans Fear Plan to Herd Them There 

Displaced Palestinians fleeing Rafah amid ongoing Israeli military operations arrive in Khan Younis, in the southern Gaza Strip, Sunday, March 23, 2025. (AP)
Displaced Palestinians fleeing Rafah amid ongoing Israeli military operations arrive in Khan Younis, in the southern Gaza Strip, Sunday, March 23, 2025. (AP)

Israel's army is flattening the remaining ruins of the city of Rafah on the southern edge of the Gaza Strip, residents say, in what they fear is a part of a plan to herd the population into confinement in a giant camp on the barren ground.

No food or medical supplies have reached the 2.3 million residents of the Gaza Strip in nearly two months, since Israel imposed what has since become its longest ever total blockade of the territory, following the collapse of a six-week ceasefire.

Israel relaunched its ground campaign in mid-March and has since seized swathes of land and ordered residents out of what it says are "buffer zones" around Gaza's edges, including all of Rafah which comprises around 20 percent of the Strip.

Israeli public broadcaster Kan reported on Saturday that the military was setting up a new "humanitarian zone" in Rafah, to which civilians would be moved after security checks to keep out Hamas fighters. Aid would be distributed by private companies.

The Israeli military has yet to comment on the report and did not immediately respond to a Reuters request for comment. Residents said massive explosions could now be heard unceasingly from the dead zone where Rafah had once stood as a city of 300,000 people.

"Explosions never stop, day and night, whenever the ground shakes, we know they are destroying more homes in Rafah. Rafah is gone," Tamer, a Gaza City man displaced in Deir Al-Balah, further north, told Reuters by text message.

He said he was getting phone calls from friends as far away as across the border in Egypt whose children were being kept awake by the explosions.

Abu Mohammed, another displaced man in Gaza, told Reuters by text: "We are terrified that they could force us into Rafah, which is going to be like a cage of a concentration camp, completely sealed off from the world."

Israel, which imposed its total blockade on Gaza on March 2, says enough supplies reached the territory in the previous six weeks of the truce that it does not believe the population is at risk. It says it says it cannot allow in food or medicine because Hamas fighters would exploit it.

United Nations agencies say Gazans are on the precipice of mass hunger and disease, with conditions now at their worst since the war began on October 7, 2023, when Hamas fighters attacked Israeli communities.

Gaza health officials said on Monday at least 23 people had been killed in the latest Israeli strikes across the Strip.

At least 10, some of them children, were killed in an Israeli airstrike on a house in Jabalia in the north and six were killed in an airstrike on a cafe in the south. Footage circulating on social media showed some victims critically injured as they sat around a table at the cafe.

EATING WEEDS AND TURTLES

Talks mediated by Qatar and Egypt have so far failed to extend the ceasefire, during which Hamas released 38 hostages and Israel released hundreds of prisoners and detainees.

Fifty-nine Israeli hostages are still held in Gaza, fewer than half of them believed to be alive. Hamas says it would free them only under a deal that ended the war; Israel says it will agree only to temporary pauses in fighting unless Hamas is completely disarmed, which the fighters reject.

In Doha, Qatar's prime minister said on Sunday that efforts to reach a new ceasefire in Gaza had made some progress.

On Friday, the World Food Program said it had run out of food stocks in Gaza after the longest closure the Gaza Strip had ever faced.

Some residents toured the streets looking for weeds that grow naturally on the ground, others picked up dry leaves from trees. Desperate enough, fishermen turned to catching turtles, skinning them and selling their meat.

"I went to the doctor the other day, and he said I had some stones in my kidney and I needed surgery that would cost me around $300. I told him I would rather not use painkiller and use the money to buy food for my children," one Gaza City woman told Reuters, asking not to be identified for fear of retribution.

"There is no meat, no cooking gas, no flour, and no life, this is Gaza in simple but painful terms."

The Gaza war started after Hamas-led fighters killed 1,200 people and took 251 hostages to Gaza in the October, 2023 attacks, according to Israeli tallies. Since then, Israel's offensive on the enclave killed more than 51,400, according to Palestinian health officials.