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Yemen Central Bank Acts to Stop Currency Collapse, Money Laundering

Central Bank of Yemen in Aden(Saba News Agency)
Central Bank of Yemen in Aden(Saba News Agency)
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Yemen Central Bank Acts to Stop Currency Collapse, Money Laundering

Central Bank of Yemen in Aden(Saba News Agency)
Central Bank of Yemen in Aden(Saba News Agency)

The Central Bank of Yemen is taking action to address the plummeting value of the Yemeni rial and combat financial crimes. This follows the second installment of a $250 million grant from Saudi Arabia to the Yemeni government.

Despite previous efforts to stabilize the exchange rate through regular currency auctions, disruptions in oil exports due to Houthi attacks on ports have caused the rial to drop.

According to banking insiders who spoke with Asharq Al-Awsat, the second installment of Saudi aid is helping the Central Bank manage currency markets and stabilize the Yemeni rial’s exchange rate, which has been declining due to halted oil exports.

The Central Bank’s decision to auction $60 million this week is seen as a key move to halt the rial’s slide.

Since the appointment of new Prime Minister Ahmed Awad bin Mubarak, the local currency has been fluctuating.

Government-controlled exchange markets have been unstable due to irregular salary payments in recent months.

Currency exchange shops reported 1622 rials per dollar on Monday, according to traders who spoke to Asharq Al-Awsat.

At the same time, in efforts to control the banking sector and fight money laundering, the Central Bank of Yemen has received support from the Public Funds Court in Aden, Yemen’s interim capital.

This support backs the Central Bank’s requests for access to all banking transaction data from some commercial banks.

Additionally, these banks are required to provide all necessary information to the Anti-Money Laundering Unit for transaction verification. Two commercial banks have been found guilty of breaking the law.

Official sources report that the Public Funds Court in Aden has convicted Yemen International Bank. The bank was found guilty of failing to adhere to anti-money laundering and terrorism financing laws.

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Trump Administration Ends Some USAID Contracts Providing Lifesaving Aid across the Middle East

A USAID flag flutters outside, as the USAID building sits closed to employees after a memo was issued advising agency personnel to work remotely, in Washington, DC, US, February 3, 2025. (Reuters)
A USAID flag flutters outside, as the USAID building sits closed to employees after a memo was issued advising agency personnel to work remotely, in Washington, DC, US, February 3, 2025. (Reuters)
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Trump Administration Ends Some USAID Contracts Providing Lifesaving Aid across the Middle East

A USAID flag flutters outside, as the USAID building sits closed to employees after a memo was issued advising agency personnel to work remotely, in Washington, DC, US, February 3, 2025. (Reuters)
A USAID flag flutters outside, as the USAID building sits closed to employees after a memo was issued advising agency personnel to work remotely, in Washington, DC, US, February 3, 2025. (Reuters)

The Trump administration has notified the World Food Program and other partners that it has terminated some of the last remaining lifesaving humanitarian programs across the Middle East, a US official and a UN official told The Associated Press on Monday.

The projects were being canceled “for the convenience of the US Government” at the direction of Jeremy Lewin, a top lieutenant at Trump adviser Elon Musk’s Department of Government Efficiency whom the Trump administration appointed to oversee and finish dismantling the US Agency for International Development, according to letters sent to USAID partners and viewed by the AP.

About 60 letters canceling contracts were sent over the past week, including for major projects with the World Food Program, the world’s largest provider of food aid, a USAID official said. An official with the United Nations in the Middle East said the World Food Program received termination letters for US-funded programs in Lebanon, Jordan and Syria.

Both officials spoke on the condition of anonymity because they were not authorized to comment publicly.

Some of the last remaining US funding for key programs in Yemen, Somalia, Afghanistan and the southern African nation of Zimbabwe also was affected, including for those providing food, water, medical care and shelter for people displaced by war, the USAID official said.

The UN official said the groups that would be hit hardest include Syrian refugees in Jordan and Lebanon. Also affected are programs supporting vulnerable Lebanese people and providing irrigation systems inside Syria, a country emerging from a brutal civil war and struggling with poverty and hunger.

In Yemen, another war-divided country that is facing one of the world’s worst humanitarian disasters, the terminated aid apparently includes food that has already arrived in distribution centers, the UN official said.

Aid officials were just learning of many of the cuts Monday and said they were struggling to understand their scope.

Another of the notices, sent Friday, abruptly pulled US funding for a program with strong support in Congress that had sent young Afghan women overseas for schooling amid Taliban prohibitions on women’s education, said an administrator for that project, which is run by Texas A&M University.

The young women would now face return to Afghanistan, where their lives would be in danger, according to that administrator, who was not authorized to speak publicly and spoke on the condition of anonymity.

The Trump administration had pledged to spare those most urgent, lifesaving programs in its cutting of aid and development programs through the State Department and USAID.

The Republican administration already has canceled thousands of USAID contracts as it dismantles USAID, which it accuses of wastefulness and of advancing liberal causes.

The newly terminated contracts were among about 900 surviving programs that Secretary of State Marco Rubio had notified Congress he intended to preserve, the USAID official said.

There was no immediate comment from the State Department.