Yemeni Financial Institutions Shifting Base from Sanaa to Aden
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Synopsis
Several Yemeni banks are relocating from Sanaa to Aden to avoid US sanctions against the Houthi group. The Central Bank of Yemen supports this move and aims to protect banking operations. This decision follows a previous suspension of dealings with banks non-compliant with relocation efforts and highlights ongoing tensions in the region.
Key Takeaways
- Yemeni banks are relocating to Aden.
- This move is to evade US sanctions on the Houthi group.
- The Central Bank of Yemen supports the relocation.
- Collaboration with international financial institutions is emphasized.
- The ongoing conflict in Yemen continues to affect the banking sector.
Aden, March 15 (NationPress) Several Yemeni banks based in the capital city of Sanaa have made the decision to transfer their operations to the temporary capital, Aden, in order to evade sanctions imposed by Washington on the Houthi group, as announced by the Central Bank of Yemen on Saturday.
The Central Bank expressed its support for the banks' relocation, stating that it is prepared to offer all necessary assistance and protection to ensure the uninterrupted delivery of services to Yemeni citizens both domestically and internationally.
Furthermore, the Central Bank affirmed its commitment to collaborate with various international and regional financial and humanitarian organizations to preserve the nation’s banking system and facilitate its operations.
Recognizing the complexities involved, the Central Bank mentioned that it is handling the situation with caution and responsibility to avert any consequences that could adversely affect the interests of the populace and the national economy, particularly within the banking sector.
In May of the previous year, the Central Bank had halted transactions with six major commercial banks due to their non-compliance with relocating from the Houthi-controlled Sanaa to Aden and their cooperation with the militant group, as reported by Xinhua. However, this decision was later reversed following external mediation.
On March 4, the US State Department classified the Houthis as a Foreign Terrorist Organization, under an order that was issued by President Donald Trump upon his inauguration in January.
UN Special Envoy to Yemen, Hans Grundberg, emphasized the importance of coordinating regional and international efforts to reduce tensions and promote an inclusive political process in Yemen during a visit to the Saudi capital, Riyadh. He met with the Saudi Ambassador to Yemen, Mohammed Al-Jaber, the UAE Ambassador to Yemen, Mohammed Al-Zaabi, ambassadors from permanent members of the Security Council, and other senior officials, as stated by the UN envoy’s office on social media platform X.
“Discussions revolved around Yemen and regional developments, including essential political dynamics,” the statement noted.
“He underscored the necessity of unity and collective action in securing a sustainable and peaceful resolution to the ongoing conflict,” it added.
Yemen has been entrenched in a catastrophic military conflict between the Houthi group and the internationally recognized government for over a decade.
