Several Yemeni banks headquartered in Sanaa have decided to move their operations to Aden, the country's temporary capital, in response to sanctions imposed by the United States on the Houthi group. The Central Bank of Yemen confirmed the move on Saturday, welcoming the decision and offering support to ensure the continued functioning of financial services for citizens.
The Central Bank assured the relocated banks of its commitment to providing necessary protection and assistance, facilitating their operations both within Yemen and internationally. It also reaffirmed its cooperation with international financial institutions and humanitarian organisations to maintain the stability of the country’s banking system.
Recognising the challenges posed by the ongoing conflict, the Central Bank stated that it is handling the situation with caution to prevent any negative impact on the national economy, particularly the banking sector.
This decision follows a similar situation in May last year when the Central Bank had suspended dealings with six major commercial banks for failing to move out of Houthi-controlled Sanaa and for allegedly cooperating with the group. However, the measure was later reversed following international mediation.
The relocation of banks comes shortly after the US State Department officially designated the Houthis as a "Foreign Terrorist Organisation" on 4 March. This classification follows a previous order initially announced by former US President Donald Trump upon taking office.
Meanwhile, UN Special Envoy to Yemen Hans Grundberg has called for stronger regional and international cooperation to reduce tensions and support a comprehensive political solution to the ongoing crisis. During a visit to Riyadh, he met with senior officials, including Saudi and UAE ambassadors to Yemen, as well as diplomats from the permanent members of the UN Security Council.
Grundberg’s discussions in Saudi Arabia centred on the political situation in Yemen and regional security concerns. He emphasised the importance of unity among international and regional actors to achieve a lasting and peaceful resolution to the conflict.
Yemen has been embroiled in a prolonged conflict between the Houthi group and the internationally recognised government for over a decade, leading to a severe humanitarian crisis and economic instability.
The Central Bank of Yemen confirmed the move on Saturday, welcoming the decision and offering support to ensure the continued functioning of financial services for citizens.
The Central Bank assured the relocated banks of its commitment to providing necessary protection and assistance, facilitating their operations both within Yemen and internationally.
It also reaffirmed its cooperation with international financial institutions and humanitarian organisations to maintain the stability of the country’s banking system.
Recognising the challenges posed by the ongoing conflict, the Central Bank stated that it is handling the situation with caution to prevent any negative impact on the national economy, particularly the banking sector.
This decision follows a similar situation in May last year when the Central Bank had suspended dealings with six major commercial banks for failing to move out of Houthi-controlled Sanaa and for allegedly cooperating with the group. However, the measure was later reversed following international mediation.
The relocation of banks comes shortly after the US State Department officially designated the Houthis as a "Foreign Terrorist Organisation" on 4 March. This classification follows a previous order initially announced by former US President Donald Trump upon taking office.
Meanwhile, UN Special Envoy to Yemen Hans Grundberg has called for stronger regional and international cooperation to reduce tensions and support a comprehensive political solution to the ongoing crisis.
During a visit to Riyadh, he met with senior officials, including Saudi and UAE ambassadors to Yemen, as well as diplomats from the permanent members of the UN Security Council.
Grundberg’s discussions in Saudi Arabia centred on the political situation in Yemen and regional security concerns. He emphasised the importance of unity among international and regional actors to achieve a lasting and peaceful resolution to the conflict.
Yemen has been embroiled in a prolonged conflict between the Houthi group and the internationally recognised government for over a decade, leading to a severe humanitarian crisis and economic instability.
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