Yemen’s Central Bank Tightens Grip on Foreign Transfers

Yemen’s Central Bank. (Government media)
Yemen’s Central Bank. (Government media)
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Yemen’s Central Bank Tightens Grip on Foreign Transfers

Yemen’s Central Bank. (Government media)
Yemen’s Central Bank. (Government media)

Yemen’s Central Bank, based in Aden, the interim capital, has tightened its grip on foreign money transfers, requiring all transactions to go through approved banks and exchange companies.

Banks and exchange companies must operate mainly from Aden and grant local entities permission to handle transactions. Moreover, they must deliver remittances in the received currency without converting unless the client requests otherwise.

This step aims to better regulate financial flows amidst Yemen’s challenging economic situation.

The decision strengthens the Central Bank’s control in Aden by requiring all banks and exchange companies in Houthi-held areas to get approval before conducting transactions.

It also ensures that transfers are made in the original currency, unlike what the Houthis are doing now, withholding transfers in US dollars. This comes just two days before the deadline for banks to move their main offices from Houthi-controlled Sanaa to the interim capital.

According to Yemeni financial expert Wahid Al-Fudai, the Central Bank’s decision aims to regulate international money transfers through remittance companies and tighten control over them.

Al-Fudai sees this decision as part of the bank’s efforts to regulate banks and exchange companies according to local laws, serving the public interest, and keeping up with global trends.

He explained to Asharq Al-Awsat that the Central Bank had previously issued instructions regarding financial networks, emphasizing the need for its oversight over external transfers.

He stressed that only qualified and licensed institutions are allowed to conduct these transfers, meeting all requirements for compliance with international standards, especially in combating money laundering and terrorism financing.

Al-Fudai highlighted the importance of this step, especially with the Iran-backed Houthi militias now labeled as a terrorist organization by the United States and Australia, which could lead to further complications requiring the Central Bank’s attention.



More than a 100 Killed in Gaza in 24 Hours

Smoke from Israeli bombardment billows in the background near an area previously housing displaced Palestinians leaving Rafah towards Khan Younis on June 20, 2024, in the southern Gaza Strip, amid the ongoing conflict in the Palestinian territory between Israel and Hamas. (AFP)
Smoke from Israeli bombardment billows in the background near an area previously housing displaced Palestinians leaving Rafah towards Khan Younis on June 20, 2024, in the southern Gaza Strip, amid the ongoing conflict in the Palestinian territory between Israel and Hamas. (AFP)
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More than a 100 Killed in Gaza in 24 Hours

Smoke from Israeli bombardment billows in the background near an area previously housing displaced Palestinians leaving Rafah towards Khan Younis on June 20, 2024, in the southern Gaza Strip, amid the ongoing conflict in the Palestinian territory between Israel and Hamas. (AFP)
Smoke from Israeli bombardment billows in the background near an area previously housing displaced Palestinians leaving Rafah towards Khan Younis on June 20, 2024, in the southern Gaza Strip, amid the ongoing conflict in the Palestinian territory between Israel and Hamas. (AFP)

 At least 42 people were killed in Israeli attacks on districts of Gaza City in the north of the Palestinian enclave on Saturday, the director of the Hamas-run government media office said.
One Israeli strike on houses in Al-Shati, one of the Gaza Strip's eight historic refugee camps, killed 24 people, Ismail Al-Thawabta told Reuters. Another 18 Palestinians were killed in a strike on houses in the Al-Tuffah neighborhood.

The offensive has left Gaza in ruins, killed more than 37,400 people, of whom 101 were killed in the past 24 hours, according to Palestinian health authorities, and left nearly the entire population homeless and destitute.

The Israeli military released a brief statement saying: "A short while ago, army fighter jets struck two Hamas military infrastructure sites in the area of Gaza City."
It said more details would be released soon.
Hamas did not comment on the Israeli claim to have hit its military infrastructure. It said in a statement the attacks targeted the civilian population and vowed in a statement "the occupation and its Nazi leaders will pay the price for their violations against our people."
Footage obtained by Reuters showed dozens of Palestinians rushing out to search for victims amid the destroyed houses. The footage showed wrecked homes, blasted walls, and debris and dust filling the street in Shati refugee camp.

More than eight months into the war, Israel's advance is now focused on the two last areas its forces had yet to seize: Rafah on Gaza's southern edge and the area surrounding Deir al-Balah in the centre.
Residents said Israeli tanks deepened their incursion into western and northern Rafah areas in recent days. On Saturday Israeli forces bombed several areas from air and the ground, forcing many families living in areas described as humanitarian-designated zones to leave northwards.
The Israeli military said forces continued "precise, intelligence-based" targeted operations in Rafah, killing many Palestinian gunmen and dismantling military infrastructure.
On Friday, the Gaza health ministry said at least 25 Palestinians were killed in Mawasi in western Rafah and 50 wounded. Palestinians said a tank shell hit a tent housing displaced families.