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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)
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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.

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Baghdad Urges Washington to Prevent ‘Imminent’ Israeli Strikes

Sudani visiting a market in Baghdad on Thursday (Government media)
Sudani visiting a market in Baghdad on Thursday (Government media)
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Baghdad Urges Washington to Prevent ‘Imminent’ Israeli Strikes

Sudani visiting a market in Baghdad on Thursday (Government media)
Sudani visiting a market in Baghdad on Thursday (Government media)

Iraqi Prime Minister Mohammed Shia Al-Sudani on Thursday called on major powers to “exert greater efforts to end the war in Palestine and Lebanon.” Meanwhile, an Iraqi government official urged the United States to “prevent any attacks on the country,” referring to potential Israeli strikes.
During a phone conversation with Russian President Vladimir Putin, Al-Sudani stressed the importance of ensuring the conflict does not escalate “to a level that threatens regional and global stability.”
The Iraqi prime minister’s appeal comes amid reports suggesting that Israel may launch strikes on Iraq in retaliation for attacks by Iraqi armed factions targeting Israeli positions.
The Iraqi government is striving to assert its exclusive authority over weapons and war-related decisions. However, armed factions affiliated with the Axis of Resistance openly claim responsibility for near-daily rocket attacks on Israel. This has provided Israel with a justification for potentially targeting Iraqi territory, especially after it filed a complaint with the UN Security Council against six Iraqi factions and held Baghdad responsible for the attacks.
These factions have also openly declared their involvement in the ongoing conflict with Israel in Lebanon and Gaza. The Iraqi government has been unable to take decisive action to halt the activities of these factions, which many believe could soon expose Iraq to an Israeli strike.
According to media reports, Washington has warned Baghdad that Israeli airstrikes on Iraq are “imminent” unless the Iraqi government curtails attacks by Iranian-backed factions on Israel. The Times of Israel cited sources indicating that the United States has “exhausted all means of pressure on Israel” and urged Iraq to act swiftly to prevent such attacks.
Despite repeated assurances from the Iraqi government—including its recent adoption of 12 measures by the National Security Council to counter Israeli threats and complaints—the situation remains tense. These measures include monitoring Iraq’s western borders, preventing factions from launching attacks, and maintaining Iraq’s neutrality in the ongoing conflict.
On Wednesday, Abu Hussein Al-Hamidawi, Secretary-General of Kata’ib Hezbollah, made a striking statement on the role of resistance factions in the war and their commitment to the Unity of Fronts doctrine frequently mentioned by Axis of Resistance groups.
In an interview published by the faction’s media arm, Al-Hamidawi said: “The continuity of the Unity of Fronts concept depends on what the Lebanese Hezbollah decides.”
Al-Hamidawi also emphasized that resistance factions are constantly coordinating internally and with external partners such as Hezbollah, the Houthis, and Palestinian resistance leaders.
“We aim to ensure that the Palestinian people are not left alone and that the Unity of Fronts remains intact,” he stated.
Fadi Al-Shammari, a political advisor to Sudani, reiterated that Israel’s threats “are not new,” citing the recent complaint filed by Israel with the UN Security Council as part of its pattern of issuing threats.
In media statements, Al-Shammari reaffirmed the Iraqi government’s long-standing position: “The decision of war and peace lies solely with the Iraqi government.”
He noted that the factions’ attacks are being launched from areas outside Iraq’s borders, specifically from Syria. However, he stressed that the Iraqi government is working through its security and military agencies to prevent Iraq from becoming a battlefield for external or internal parties.
Al-Shammari also called on the United States to fulfill its responsibilities under the Strategic Framework Agreement and security pact with Iraq, emphasizing the need to deter and respond to any external attacks that threaten Iraq’s internal security.