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Yemen's Central Bank warns of suspending activity and currency collapse

A bank teller counts money at the Central Bank of Aden in Aden on December 13, 2018 [Saleh Al-OBEIDI / AFP / Getty]
A bank teller counts money at the Central Bank of Aden in Aden on December 13, 2018 [Saleh Al-OBEIDI / AFP / Getty]

The Central Bank of Yemen in the temporary capital of Aden, warned of the possibility of suspending its activities and the collapse of the local currency, after United Arab Emirates (UAE) militias looted billions of riyals of cash reserves.

The Central Bank of Yemen disclosed that the UAE-backed militias of the Southern Transitional Council (STC), took over 10.5 billion riyals from the bank at gunpoint.

The financial department of the bank indicated in a statement that the STC leader, Qasim Al-Thobani, stormed the bank last Wednesday accompanied by military crews with written instructions from the leadership of the council that included an order to spend 10.5 billion riyals as salaries for the Aden Security Department and the Southern Armed Forces.

The statement pointed out that the Central Bank’s financial department explained to Al-Thobani that it was not possible to dispense such an amount for a person who does not have any legal capacity, according to the law of the establishment.

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The statement indicated that Al-Thobani rejected the bank’s explanation and threatened to use force against its staff, who were forced to surrender the designated amount.

The statement stressed that the recent development may cause the total suspension of the Central Bank’s activities, as the amount was taken from the general cash reserves and not from the establishment’s income, noting that if the Central Bank stops collecting revenues, it may undermine its activity and lead to the collapse of local currency.

The STC leadership had directed the officials of the revenue committees to deposit the revenues in the accounts of the National Bank of Yemen under the supervision of the council, away from the legitimate government and the Central Bank of Yemen.

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Middle EastNewsUAEYemen
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