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's Top General Resigns over Oct. 7 Failures

File Photo: A solidarity rally for Israeli hostages with Hamas in Tel Aviv on Tuesday (AFP)
File Photo: A solidarity rally for Israeli hostages with Hamas in Tel Aviv on Tuesday (AFP)
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Israel's Top General Resigns over Oct. 7 Failures

File Photo: A solidarity rally for Israeli hostages with Hamas in Tel Aviv on Tuesday (AFP)
File Photo: A solidarity rally for Israeli hostages with Hamas in Tel Aviv on Tuesday (AFP)

Israel's army chief Herzi Halevi said on Tuesday he would resign on March 6, taking responsibility for the massive security lapse on Oct. 7, 2023, when Palestinian Hamas gunmen from Gaza carried out a cross-border attack on Israel.

Halevi, who had been widely expected to step down in the wake of the deadliest single day in Israel's history, said he would complete the Israel Defense Forces' inquiries into Oct. 7 and strengthen the IDF's readiness for security challenges. It was not immediately clear who would replace Halevi, who said he would transfer the IDF command to a yet-to-be-named successor.

Despite public anger over Oct. 7, Prime Minister Benjamin Netanyahu's government has resisted calls to open a state inquiry into its own responsibility for the security breach that resulted in 1,200 Israelis killed and about 250 hostages taken.

"On the morning of Oct. 7, the IDF failed in its mission to protect the citizens of Israel," Halevi wrote in his resignation letter to Defense Minister Israel Katz.

Israel, he added, paid a heavy price in terms of human lives and those kidnapped and wounded in "body and soul."

"My responsibility for the terrible failure accompanies me every day, hour by hour, and will do so for the rest of my life," said Halevi, a military veteran of four decades.

Halevi was in lockstep with former defense minister Yoav Gallant, who was fired by Netanyahu in November, and at loggerheads with some ministers over military conscription exemptions given to ultra-Orthodox Jewish seminary students.

A number of senior military officers have already resigned over the failures of Oct. 7, and the head of the military's Southern Command, Major-General Yaron Finkelman, also announced he would be resigning.

After 15 months of war in Gaza, the first phase of a ceasefire deal with Hamas went into effect on Sunday, with three hostages being released among a planned 33 in the next six weeks. Some 94 hostages are believed to remain in Gaza, though some may have since died in captivity.

HARDLINERS RAPPED HALEVI'S CONDUCT OF GAZA WAR

Katz thanked Halevi for his contributions to the military and that he would continue to fulfill his duties until a successor is named, while there would be an orderly search for his replacement. Netanyahu also accepted Halevi's resignation.

Halevi was often criticized by hardliners in Netanyahu's government including Finance Minister Bezalel Smotrich, who said his conduct of the war in Gaza was too soft.

More than 46,000 Palestinians have died in the conflict since October 2023 and the heavily built-up territory has been widely demolished by Israeli bombardments and airstrikes.

Smotrich on Tuesday praised Halevi for the military's success in shattering Hamas' military capabilities during the war but also put blame on his shoulders for the Oct. 7 debacle.

"My criticism of his failure in the campaign to eliminate Hamas' civilian and governmental capabilities, as well as his responsibility for the October 7th failure, does not diminish the great gratitude we owe him for all his work and contributions over the years and his achievements," said Smotrich, who opposed the ceasefire and hostage release deal.

"The coming period will be marked by the replacement of the senior military command as part of preparations for the renewal of the war, this time in the West Bank until complete victory."

Halevi said that despite the failings of Oct. 7, Israel had notched many military achievements since then which had "changed the Middle East".  

He pointed to Israel's military degradation of Hamas that had created conditions for returning hostages, its "unprecedented" damage inflicted on Iranian-backed Hezbollah in Lebanon, a significantly weakened Iran, and its destruction of significant parts of Syria's military.