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Al-Lami's Dismissal Splits Iraqi PMF

Iraqi Prime Minister Mohammed Shia al-Sudani between PMF leader Falih al-Fayyadh and Chief of Staff Abu Fadak (government media)
Iraqi Prime Minister Mohammed Shia al-Sudani between PMF leader Falih al-Fayyadh and Chief of Staff Abu Fadak (government media)
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Al-Lami's Dismissal Splits Iraqi PMF

Iraqi Prime Minister Mohammed Shia al-Sudani between PMF leader Falih al-Fayyadh and Chief of Staff Abu Fadak (government media)
Iraqi Prime Minister Mohammed Shia al-Sudani between PMF leader Falih al-Fayyadh and Chief of Staff Abu Fadak (government media)

After a tense night, the Popular Mobilization Forces (PMF) in Iraq reversed their decision to fire security chief Abu Zeinab al-Lami. Sources said Kata’ib Hezbollah forced the PMF to backtrack by encircling their headquarters in Baghdad with armed fighters.

Iraqi sources reported on Thursday morning that the head of the PMF had dismissed al-Lami and temporarily appointed Ali al-Zaidi. However, the PMF later reversed this decision under unclear circumstances.

Local media reported that armed Kata’ib Hezbollah members, with vehicles and medium weapons, surrounded the PMF headquarters in Baghdad, where al-Lami’s office is, and warned against enforcing his dismissal.

Sources told Asharq Al-Awsat that government officials, security leaders, and faction heads held contacts amid a tense atmosphere of threats.

Kata’ib Hezbollah sent 15 armed vehicles to seize the PMF headquarters, coinciding with talks between PMF Chief of Staff Abu Fadak Al-Mohammedawi and government officials. This led to reversing al-Lami’s dismissal.

Both Abu Fadak and al-Lami are from Kata’ib Hezbollah, and many believe the dismissal aimed to reduce the faction’s influence in PMF security institutions.

Social media reported that Kata’ib Hezbollah’s vehicles parked at the security directorate’s back lot after militants took control of the building.

Al-Lami had been making key decisions without consulting PMF leader Falih al-Fayyadh or Prime Minister Mohammed Shia al-Sudani.

Reports suggest the dismissal order came from al-Sudani, but sources believe Asa’ib Ahl al-Haq was behind it, with the prime minister signing the order.

The dismissal is rooted in deep conflicts between Kata’ib Hezbollah and Asa’ib Ahl al-Haq, with the latter seeking full control over the PMF, according to sources.

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UN Warns of Profound Liquidity Crisis in Yemen’s Houthi-Controlled Areas

For the first time, the Houthis will face difficulties in financial transfers and foreign currency supply (local media)
For the first time, the Houthis will face difficulties in financial transfers and foreign currency supply (local media)
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UN Warns of Profound Liquidity Crisis in Yemen’s Houthi-Controlled Areas

For the first time, the Houthis will face difficulties in financial transfers and foreign currency supply (local media)
For the first time, the Houthis will face difficulties in financial transfers and foreign currency supply (local media)

A UN program recently warned of low foreign currency reserves and a liquidity crisis in Houthi-controlled areas if the economic conflict with the internationally recognized government continues in Yemen.

It also noted that the poor food consumption significantly worsened in the north, increasing by 78% year-on-year, compared to a 52% increase in the south.

In its Food Security Update, the World Food Program (WFP) warned that a banking crisis is looming in Yemen, as a transaction ban has been announced between the intentionally recognized government and the Houthis-controlled areas.

“These developments, coupled with diminished foreign currency reserves in the north, could result in liquidity crisis with profound implications on markets, livelihoods, and food security situation,” it said.

The Program also noted that the current escalation in the “economic conflict” is likely to disrupt the flow of remittances and the overall financial and banking sectors, posing significant challenges for importers to procure essential food and non-food items, and ultimately impacting food supply and food price.

According to the WFP Update, this conflict comes while limited income opportunities are a key challenge to accessing food, reported by 71% in the north and 60% in the south.

It added that the depth and severity of food deprivation (poor food consumption) also peaked in May, at 32% in the north and 31% in the south.

This trend significantly worsened in the north, increasing by 78% year-on-year, compared to a 52% increase in the south.

Severe food deprivation reached an all-time high in Al Jawf, Al Bayda, Hajjah, Amran, and Al Hodeidah, WFP said.

Around 8% of households in the north reported relying on begging to meet their essential needs, compared to three percent in the south, it showed, adding that this practice was particularly pronounced in Sadah, Hajjah, Amran, and Al Bayda.

WFP also said the total volume of fuel imported via the Red Sea ports increased by 32% during Jan-May 2024 compared to the same period in 2023.

Fuel imports via the southern ports of Aden and Mukalla decreased by 41% year-on-year, as local crude oil production from Marib largely contributes to covering domestic fuel needs in government controlled areas.

However, the WFP update said it is crucial to closely monitor import flows over the coming months, especially given the increased insurance costs for Yemeni ports, the diminished foreign currency reserves, and the banking crisis.

Also, by the end of May 2024, WFP said that the Yemeni riyal (YER) depreciated to an all-time low of YER 1,749 per dollar in government-controlled areas, losing around 25% of its value against the US dollar year-on-year.

“This decline is primarily attributed to low foreign currency reserves and revenue shortages due to reduced crude oil exports,” it said.

The UN program also noted that the overall volume of food imports via all Yemeni seaports increased by 22% during the first five months of 2024 compared to the same period in 2023.

However, it showed that the Red Sea ports saw a 35% annual rise in food imports during Jan-May 2024, while the southern ports of Aden and Mukalla exhibited a 16% annual decline.