Fight for control of Yemen’s banks between government, Houthis threatens to further wreck economy

Fight for control of Yemen’s banks between government, Houthis threatens to further wreck economy
People visit a livestock market in Sanaa, Yemen, before the Eid Al-Adha holiday on June 15, 2024. (AP)
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Updated 18 June 2024
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Fight for control of Yemen’s banks between government, Houthis threatens to further wreck economy

Fight for control of Yemen’s banks between government, Houthis threatens to further wreck economy
  • The Houthis who control the north and center of the country and the government running the south use different currency notes with different exchange rates
  • Yemen has been torn by civil war ever since the Iranian-backed Houthi rebels took over Sanaa and much of Yemen’s north and center in 2015

SANAA, Yemen: Yemen’s Houthi rebels and its internationally recognized government are locked in a fight for control of the country’s banks that experts warn is threatening to further wreck an economy already crippled by nearly a decade of war.
The rivalry over the banks is throwing Yemen’s financial system into deeper turmoil. Already, the Houthis who control the north and center of the country and the government running the south use different currency notes with different exchange rates. They also run rival central banks.
The escalating money divide is eroding the value of Yemen’s currency, the riyal, which had driven up prices for clothing and meat before the Islamic holiday of Eid Al-Adha started on Sunday.
For weeks, Yemenis in Houthi-controlled areas have been unable to pull their money out of bank savings accounts, reportedly because the Houthi-run central bank, based in the capital, Sanaa, has stopped providing liquidity to commercial and government banks. Protests have broken out in front of some banks, dispersed by security forces.
Yemen has been torn by civil war ever since the Iranian-backed Houthi rebels took over Sanaa and much of Yemen’s north and center in 2015. The Saudi-backed internationally recognized government and its nominal ally the Southern Transitional Council, a group supported by the United Arab Emirates, govern the south and much of the east, centered in the southern port city of Aden.
Yemen was already the Arab world’s poorest country before the war began. Punitive actions by each side against the other’s banks over the past week now threaten to undermine merchants’ ability to import food and basic commodities and to disrupt the transfer of remittances from Yemenis abroad, on which many families depend, said Edem Wosornu, director of operations and advocacy for the UN humanitarian coordination office known as OCHA.
“All these factors will likely deepen poverty, worsen food insecurity and malnutrition, and increase reliance on humanitarian assistance,” she told a UN Security Council briefing on Thursday. The dispute could escalate to the point that banks in Houthi-run areas are barred completely from international financial transactions, which she said would have “catastrophic ramifications.”
The internationally recognized government moved the central bank to Aden in 2016, and since then began issuing new banknotes to replace worn-out riyals. Houthi authorities, which set up their own central bank in Sanaa, banned the use of the new money in areas under their control.
In March, the Houthi-controlled central bank announced it was rolling out its own new 100-riyal coins. The international community and Yemen’s recognized government denounced the move, saying the Houthis were trying to set up their own financial system and warning it will deepen Yemen’s economic divide.
Adding to the confusion, the bills have different exchange rates — riyals issued in Sanaa go for about 530 to the dollar, while those from Aden are around 1,800 to the dollar.
In response, the Aden-based central bank gave banks 60 days to relocate their headquarters to the southern city and stop operating under Houthi policies, or else risk facing sanctions related to money laundering and anti-terrorism laws.
The central bank was “forced to make these decisions, especially after the Houthi group issued their own currency and took unilateral steps toward complete independence from the internationally recognized Central Bank in Aden,” said Mustafa Nasr, an economic expert and head of the Studies and Economic Media Center SEMC.
No banks met the deadline — either because they needed more time or because they feared Houthi sanctions if they moved, Nasr said.
When the deadline ran out last week, the central bank in Aden banned dealing with six banks headquartered in Sanaa, meaning currency exchange offices, money transfer agencies and banks in the south could no longer work with them.
In retaliation, the Houthi-run central bank in Sanaa banned all dealings with 13 banks headquartered in Aden. That means people in Houthi-controlled areas can’t deposit or withdraw funds through those banks or receive wire transfers made through them.
Even as the fight for control is going on, both sides are facing a cash crunch. The Houthi government has few sources of foreign currency and its new coins aren’t recognized outside its territory.
In January, the United States designated the Houthis as a global terror group in response to the rebels’ attacks on shipping in the Red Sea and Arabian Sea. The Houthis say the attacks are in retaliation for the Israel-Hamas war in the Gaza Strip. Because of the US decision, banks around the world might be concerned and reluctant to continue any financial dealings with banks that have headquarters under Houthi control, said Youssef Saeed, a University of Aden economic professor.
The economy in Aden isn’t significantly better. The government’s revenues have been hit hard ever since Houthi attacks on oil ports in late 2022 forced a halt in oil exports, the main earner of foreign currency.
Since March, depositors in Houthi-run areas have been unable to pull money out of their accounts. The central bank in Sanaa hasn’t announced any formal restrictions, but several economists told The Associated Press that it has informally stopped releasing funds that individual banks have put in its coffers — in part because of a lack of liquidity.
At one bank that saw protests by depositors last month, the International Bank of Yemen, a note hung in the lobby said, “In coordination with the Central Bank, withdrawals from old accounts have been suspended until further notice.”
Um Ahmed, a 65-year-old woman who was among those protesting outside the bank, said that she was trying to withdraw money to help her son buy a motor scooter for work, but the bank refused.
“I served this country as a teacher for 35 years and saved every penny and deposited my money at the bank, but they took it all,” she said. “This money belongs to my husband and me and our children.”
 


WFP says has depleted all its food stocks in Gaza

WFP says has depleted all its food stocks in Gaza
Updated 25 April 2025
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WFP says has depleted all its food stocks in Gaza

WFP says has depleted all its food stocks in Gaza
  • Entry of all humanitarian aid has been blocked by Israel since March 2

GAZA CITY, Palestinian Territories: The UN’s World Food Programme on Friday warned it has depleted all its food stocks in war-ravaged Gaza, where the entry of all humanitarian aid has been blocked by Israel since March 2.
“Today, WFP delivered its last remaining food stocks to hot meals kitchens in the Gaza Strip. These kitchens are expected to fully run out of food in the coming days,” WFP said in a statement.


Sudan violence ‘may amount to crimes against humanity’: UK

Sudan violence ‘may amount to crimes against humanity’: UK
Updated 25 April 2025
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Sudan violence ‘may amount to crimes against humanity’: UK

Sudan violence ‘may amount to crimes against humanity’: UK
  • Lammy called on the army and the paramilitary Rapid Support Forces (RSF) to “de-escalate urgently“
  • “Last week, the UK gathered the international community in London to call for an end to the suffering of the Sudanese people”

LONDON: Violence in Sudan’s Darfur region shows “the hallmarks of ethnic cleansing and may amount to crimes against humanity,” UK foreign minister David Lammy said.
Lammy called on the army and the paramilitary Rapid Support Forces (RSF) to “de-escalate urgently” and said in a statement issued late Thursday that Britain would continue to “use all tools available to us to hold those responsible for atrocities to account.”
Paramilitary shelling of the besieged city of El-Fasher, the state capital of North Darfur, has killed more than 30 civilians and wounded dozens more, activists said on Monday.
El-Fasher is the last major city in the vast Darfur region that still remains in army control.
Lammy said that reports of the violence in and around El-Fasher were “appalling.”
“Last week, the UK gathered the international community in London to call for an end to the suffering of the Sudanese people.
“Yet some of the violence in Darfur has shown the hallmarks of ethnic cleansing and may amount to crimes against humanity,” he said.
He called on the RSF to “halt its siege of El-Fasher,” adding that “the warring parties have a responsibility to end this suffering.”
Lammy also urged the Sudanese Armed Forces to allow safe passage for civilians to reach safety.
International aid agencies have long warned that a full-scale RSF assault on El-Fasher could lead to devastating urban warfare and a new wave of mass displacement.
UNICEF has described the situation as “hell on earth” for at least 825,000 children trapped in and around El-Fasher.


Hundreds of Syrian Druze clerics head to Israel on pilgrimage

Hundreds of Syrian Druze clerics head to Israel on pilgrimage
Updated 25 April 2025
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Hundreds of Syrian Druze clerics head to Israel on pilgrimage

Hundreds of Syrian Druze clerics head to Israel on pilgrimage
  • Hundreds of clerics from Syria’s Druze minority on Friday are heading to Israel where they will conduct a pilgrimage to a sacred shrine, the second such visit since longtime ruler Bashar Assad’s

DAMASCUS:Hundreds of clerics from Syria’s Druze minority on Friday are heading to Israel where they will conduct a pilgrimage to a sacred shrine, the second such visit since longtime ruler Bashar Assad’s ouster.
The clerics from the esoteric, monotheistic faith, are to cross the border on foot, according to a Syrian official and a local news organization, despite Israel and Syria being technically at war.
The delegation will visit the Nabi Shuaib shrine in north Israel’s Galilee region, where an annual pilgrimage is held from April 25-28 each year.
Abu Yazan, the official from Hader on the Syrian Golan Heights, said that 400 clerics from his town and from the Damascus suburb of Jaramana will head to Israel after the Israeli authorities gave their approval.
Asking not to be identified by his full name, he said the trip was “purely religious” in nature.
Suwayda24, a news organization from nearby Sweida province, said some 150 Druze clerics from that area would also participate.
The group notified the Syrian government of its plan to go to Israel, though it received no response, the website added.
Unlike during a smaller visit to the shrine last month, the clerics will spend the night in Israel this time.
Abu Yazan, who is one of the participants, said that “we requested to stay for a week to visit the shrine” and other members of the religious community “but the Israeli side only authorized one night.”
The Druze are mainly divided between Syria, Israel and Lebanon.
They account for about three percent of Syria’s population and are heavily concentrated in the south.
Israel seized much of the strategic Golan Heights from Syria in a war in 1967, later annexing the area in 1981 in a move largely unrecognized by the international community.
After Islamist-led forces ousted Assad in December, Israel carried out hundreds of air strikes on Syria and sent troops into the demilitarised buffer zone of the Golan.
Israeli authorities have also voiced support for Syria’s Druze and mistrust of the country’s new leaders.
In March, following a deadly clash between government-linked forces and Druze fighters in Jaramana, Israeli Defense Minister Israel Katz said his country would not allow Syria’s new rulers “to harm the Druze.”
Druze leaders rejected the warning and declared their loyalty to a united Syria.


Rescuers say death toll from Israeli strike on north Gaza home rises to 23

Rescuers say death toll from Israeli strike on north Gaza home rises to 23
Updated 8 min 57 sec ago
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Rescuers say death toll from Israeli strike on north Gaza home rises to 23

Rescuers say death toll from Israeli strike on north Gaza home rises to 23
  • Gaza’s civil defense agency reported on Friday that the death toll from an Israeli air strike the day before on a house in the north of the Palestinian territory had risen to 23
  • Gaza’s northern area of Jabalia has repeatedly been a focus Israel’s military offensive

GAZA CITY: Gaza’s civil defense agency reported on Friday that the death toll from an Israeli air strike the day before on a house in the north of the Palestinian territory had risen to 23.
“Civil defense teams recovered 11 bodies last night and this morning following the Israeli bombing that targeted a residential house ... in Jabalia,” Mohammed Al-Mughayyir, an official with the agency, told AFP.
“This is in addition to the 12 victims recovered at the time of the attack yesterday,” he added.
Gaza’s northern area of Jabalia has repeatedly been a focus Israel’s military offensive since the start of the war on October 7, 2023 following Hamas’s attack on Israel.
The military has returned to the district several times after announcing it had been cleared of militants, saying Hamas fighters had regrouped there.
In another strike in the area on Thursday, Israel hit what was previously a police station, rescuers said.
The toll from that attack has risen to 11, Mughayyir said, after initially announcing that nine people had been killed.
The military said on Thursday that it had struck a Hamas “command and control center” in the area of Jabalia, without specifying the target.
Israeli strikes continued on Friday, with the civil defense agency reporting that at least five people — a couple and their three children — had been killed when their tent was struck in the Al-Mawasi area of the southern city of Khan Yunis.
Agency spokesman Mahmud Bassal said that the deceased woman had been pregnant.
Since Israel resumed its offensive on March 18 after the collapse of a two-month ceasefire with Hamas, at least 1,978 people have been killed in Gaza, bringing the overall death toll of the war to 51,355, according to the Hamas-run territory’s health ministry.


UN voices concern over latest South Sudan clashes as civilians flee

UN voices concern over latest South Sudan clashes as civilians flee
Updated 25 April 2025
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UN voices concern over latest South Sudan clashes as civilians flee

UN voices concern over latest South Sudan clashes as civilians flee
  • The United Nations agency warns that it may have to reduce the number of people it can help across the country, from May, if more funding does not come through from donors

GENEVA: The United Nations said Friday it was "deeply concerned" by clashes between South Sudan's military and opposition forces in a southern state, where displaced civilians told AFP they had been left without food.
The world's youngest nation, which is deeply impoverished, has long been troubled by insecurity and instability.
But recent fighting between factions allied to President Salva Kiir and his long-time rival Vice-President Riek Machar have sparked worries of renewed war.
International observers fear a return to the five-year civil war that cost some 400,000 lives and was ended by a 2018 peace deal which brought the two together in a unity government, but which appears to be unravelling.
Clashes between the South Sudan People's Defence Forces (SSPDF) and the Sudan People's Liberation Army-in Opposition (SPLA-IO) in neighbouring Morobo and Yei counties in Central Equatoria State "have led to civilian displacement and casualties", the United Nations Mission in South Sudan (UNMISS) said.
The state includes the capital, Juba, and under the 2018 agreement was split into areas controlled by government and opposition forces.
Pro-Machar forces denounced government attacks on a military cantonment in the area earlier this week, urging civilians to leave. The army did not comment.
The UN did not give further details of the clashes, but urged an "immediate cessation of hostilities", especially given the "already fragile political and security conditions".
Morobo County Commissioner Charles Data Bullen said the situation in the area "remains volatile".
Margret Ileli, 28, said she heard gunshots nearby on Tuesday afternoon "and we started running leaving everything behind".
She was now sheltering in Morobo town but told AFP: "I am confused and I don't know what to do next."
Charles Likambo, 30, was also displaced with his family of five, telling AFP he was forced to abandon his crops and goats.
"Me and my family have not received any food assistance, and my children keep on crying because they are hungry," he said, urging humanitarian organisations to help.