Imminent Activation of Yemeni Outward Transfers via Domestic Banks

An emblem of the Central Bank of Yemen is seen on the bank's gate in Sana'a August 24, 2016. REUTERS/Khaled Abdullah
An emblem of the Central Bank of Yemen is seen on the bank's gate in Sana'a August 24, 2016. REUTERS/Khaled Abdullah
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Imminent Activation of Yemeni Outward Transfers via Domestic Banks

An emblem of the Central Bank of Yemen is seen on the bank's gate in Sana'a August 24, 2016. REUTERS/Khaled Abdullah
An emblem of the Central Bank of Yemen is seen on the bank's gate in Sana'a August 24, 2016. REUTERS/Khaled Abdullah

Yemeni commercial banks have been informed that outward transfers will be activated soon, but they are required to meet some simple conditions, the Central Bank’s Deputy Governor Khaled al-Abbadi said.

“Most Yemeni banks are responding positively and showing willingness to comply with the conditions and to perform their role,” Abbadi told Asharq Al-Awsat. Some of the conditions are: providing necessary data such as their budget, statistics and the plan to transform their headquarters to Aden in addition to other obligations.

When asked how the support for Yemen's commercial banks would benefit Yemeni citizens, he said the Central Bank’s move would provide sufficient liquidity for the financial system. Consequently, salaries would be paid on time, in addition to witnessing an increase in imports.

Abbadi affirmed that Yemen’s account in the US Federal Reserve would receive the whole revenues. Before opening the account, there were some challenges and obstacles. The first was represented in contacting the other party (Houthi and Saleh) and second tackling all US concerns and responding to all remarks.

His statement was made after he departed from Bank of England in London, when he asserted that he seeks restoring relations between the Yemen Central Bank and the Bank of England that has contributed 53 years ago in the establishment of the first central bank in the Arabian Peninsula.

Abadi added that a work plan has been agreed upon to re-normalize the Yemeni public account in the Bank of England. It is “the biggest account in sterling and we can carry out banking operations worldwide through it.”



How Did Iraq Survive ‘Existential Threat More Dangerous than ISIS’?

Iraqi sheikhs participate in a solidarity demonstration with Iran on a road leading to the Green Zone, where the US Embassy is located in Baghdad (AP). 
Iraqi sheikhs participate in a solidarity demonstration with Iran on a road leading to the Green Zone, where the US Embassy is located in Baghdad (AP). 
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How Did Iraq Survive ‘Existential Threat More Dangerous than ISIS’?

Iraqi sheikhs participate in a solidarity demonstration with Iran on a road leading to the Green Zone, where the US Embassy is located in Baghdad (AP). 
Iraqi sheikhs participate in a solidarity demonstration with Iran on a road leading to the Green Zone, where the US Embassy is located in Baghdad (AP). 

Diplomatic sources in Baghdad revealed to Asharq Al-Awsat that Iraqi authorities were deeply concerned about sliding into the Israeli-Iranian war, which they considered “an existential threat to Iraq even more dangerous than that posed by ISIS when it overran a third of the country’s territory.”

The sources explained that “ISIS was a foreign body that inevitably had to be expelled by the Iraqi entity, especially given the international and regional support Baghdad enjoyed in confronting it... but the war (with Israel) threatened Iraq’s unity.”

They described this “existential threat” as follows:

-When the war broke out, Baghdad received messages from Israel, conveyed via Azerbaijan and other channels, stating that Israel would carry out “harsh and painful” strikes in response to any attacks launched against it from Iraqi territory. The messages held the Iraqi authorities responsible for any such attacks originating from their soil.

-Washington shifted from the language of prior advice to direct warnings, highlighting the grave consequences that could result from any attacks carried out by Iran-aligned factions.

-Iraqi authorities feared what they described as a “disaster scenario”: that Iraqi factions would launch attacks on Israel, prompting Israel to retaliate with a wave of assassinations similar to those it conducted against Hezbollah leaders in Lebanon or Iranian generals and scientists at the start of the war.

-The sources noted that delivering painful blows to these factions would inevitably inflame the Shiite street, potentially pushing the religious authority to take a strong stance. At that point, the crisis could take on the character of a Shiite confrontation with Israel.

-This scenario raised fears that other Iraqi components would then blame the Shiite component for dragging Iraq into a war that could have been avoided. In such circumstances, the divergence in choices between the Shiite and Sunni communities could resurface, reviving the threat to Iraq’s unity.

-Another risk was the possibility that the Kurds would declare that the Iraqi government was acting as if it only represented one component, and that the country was exhausted by wars, prompting the Kurdish region to prefer distancing itself from Baghdad to avoid being drawn into unwanted conflicts.

-Mohammed Shia Al Sudani’s government acted with a mix of firmness and prudence. It informed the factions it would not tolerate any attempt to drag the country into a conflict threatening its unity, while on the other hand keeping its channels open with regional and international powers, especially the US.

-Iraqi authorities also benefited from the position of Iranian authorities, who did not encourage the factions to engage in the war but instead urged them to remain calm. Some observers believed that Iran did not want to risk its relations with Iraq after losing Syria.

-Another significant factor was the factions’ realization that the war exceeded their capabilities, especially in light of what Hezbollah faced in Lebanon and the Israeli penetrations inside Iran itself, which demonstrated that Israel possessed precise intelligence on hostile organizations and was able to reach its targets thanks to its technological superiority and these infiltrations.

-The sources indicated that despite all the pressure and efforts, “rogue groups” tried to prepare three attacks, but the authorities succeeded in thwarting them before they were carried out.

The sources estimated that Iran suffered a deep wound because Israel moved the battle onto Iranian soil and encouraged the US to target its nuclear facilities. They did not rule out another round of fighting “if Iran does not make the necessary concessions on the nuclear issue.”