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Khaled al-Abadi: Seven Banks Prepare to Move Headquarters to Aden

Khaled al-Abadi: Seven Banks Prepare to Move Headquarters to Aden

Saturday, 28 October, 2017 - 09:30
Central Bank of Yemen. Reuters photo

Deputy Governor of Yemen’s Central Bank Khaled al-Abadi has visited the Bank of England, which established 53 years ago the first central bank in the Arabian Peninsula in Crater district in Aden, the temporary capital of Yemen.

When President Abd Rabbuh Mansour Hadi issued an order to move the headquarters of the central bank from Sana’a to Aden, the first bank’s headquarters was revived.

Abadi’s visit was aimed at restoring relations that have been suspended since the beginning of the coup, to open an account for Yemen’s central bank in Bank of England and to facilitate transactions.

“We are still exchanging information, reports and communications, and the account will be opened soon,” Abadi said.

In an interview with Asharq Al-Awsat, Abadi said that he is proud of the leadership role entrusted in him by the Yemeni president, confirming that Governor Monasser al-Quaiti is playing a significant role in restoring the central bank to its former status and with greater momentum.

Abadi explained that the account of Yemen’s central bank in the Bank of England has the largest balance in GBP in which it can be used for banking transactions worldwide.

“Our account in the Bank of England will be used for investments, and all the loans, aids and assistance we receive from the United Kingdom will be transferred to this account in order to contribute in reconstructing Yemen.”

On Yemen’s account in the US Federal Reserve Bank, Abadi said this account will be used to receive and pay loans, issue credits for the purchase of many needs and goods, support businessman, and back food commodities because the citizen will get rice and wheat subsidies.

“This is managed by the federal reserve account,” Abadi stressed.

Before opening the account, Abadi said, “we had to face challenges and difficulties, mainly that the other party was communicating with the Americans and providing them with malicious information, and we have been able to remove all the ambiguities and restore the relationship.”

“We received great assistance from the Yemeni ambassador to Washington Dr. Ahmed bin Mubarak,” he stated.

“The second challenge was addressing all the concerns, providing explanations for all that lead to further guarantees and assurances and reducing operational risks. We conducted many interviews in this context until it was approved.”

The Governor of the central bank has chaired a meeting in Berlin under the supervision of the German Foreign Ministry and a German organization. It was attended by the Association of Yemeni Banks in addition to officials in Yemeni banks, who discussed several issues, according to Abadi.

He further noted that there will be more cooperation between the banks and the central bank as they will provide it with data and periodic reports, and they will work together to solve the liquidity crisis and provide cash and local currency.

The central bank will in its turn help the other banks by providing them liquidity, revitalizing operations and fulfilling their obligations in all Houthi-controlled areas of Yemen, Abadi said.

The Berlin meeting also discussed a plan set by several banks to move their branches to Aden.

“Around seven banks will move to Aden but they need some time,” he said. “They are currently reviewing” the plan.

Asked about the salaries of civil servants, Abadi told Asharq Al-Awsat: “We have paid the salaries in most governorates.”

“State resources are not being transferred to the Central Bank, specially to the governorates falling under Houthi control,” he added.

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