Central Bank in Aden calls for speedy resumption of oil exports

An emblem of the Central Bank of Yemen is seen on the bank’s gate in Sanaa August 24, 2016 (REUTERS/Khaled Abdullah)

Aden (South24):

The Central Bank of Yemen in Aden warned on Wednesday of the severe repercussions of the economic deterioration in the country, noting that the Houthi attacks on oil facilities and the disruption of oil and gas exports have exacerbated the financial crisis which is reflected in the dire living and service conditions.

The bank said in its statement: “The Central Bank has repeatedly warned since the escalation of Houthi attacks on the state’s revenue sectors, most notably the oil sector in October 2022, of the serious consequences and ominous consequences of the militia attacks.”

The Central Bank said that it had previously provided “many necessary solutions to reduce the effects and avoid bottlenecks in salaries and services,” but these solutions “did not receive an appropriate response from the relevant government agencies, but rather the use of important sovereign resources that contributed to providing the minimum level of services was disrupted.”

The bank called on the Presidential Leadership Council (PLC) and the government to provide the necessary support to enable it to perform its duties in protecting the stability of the national currency, and to redirect all revenues to the state’s general account in the Central Bank.

The Central Bank’s statement, which came in unusually harsh language, reflects an implicit acknowledgment of its declining ability to confront the economic crisis without effective government support, amid a deteriorating financial environment and the absence of sustainable solutions to stop the collapse of the Yemeni riyal and achieve economic stability in the country.

Earlier today, a banking source told South24 Center that the Central Bank in Aden has suspended the buying and selling of foreign currencies in exchange shops and companies in a late move to stop the decline of the Yemeni rial to a historic low against the US dollar (1 dollar = 2,360 rials).

A media source at the Central Bank confirmed the accuracy of this information to South24 Center. He said that it is a measure to stop the collapse of the Yemeni rial.