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)
Short Url
Updated 18 June 2024
Follow

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.”
 


Syrians’ asylum requests in Europe drop to decade low

Syrians’ asylum requests in Europe drop to decade low
Updated 22 min 2 sec ago
Follow

Syrians’ asylum requests in Europe drop to decade low

Syrians’ asylum requests in Europe drop to decade low
  • Asylum applications filed by Syrians in the European Union dropped to their lowest in over a decade in February following the ouster of Bashar Assad, the EU’s asylum agency said Wednesday

BRUSSELS: Asylum applications filed by Syrians in the European Union dropped to their lowest in over a decade in February following the ouster of Bashar Assad, the EU’s asylum agency said Wednesday.
Data from the European Union Agency for Asylum (EUAA) showed Syrians lodged 5,000 requests in the 27-nation bloc plus Switzerland and Norway in February, down 34 percent on the previous month.
“The latest asylum figures show how important stability in other regions is for Europe,” said Magnus Brunner, the EU’s migration commissioner.
Longtime Syrian ruler Assad was toppled by Islamist-led rebels in December after more than a decade of civil war.
Hundreds of thousands of Syrians who had sought shelter abroad have since returned home, according to the United Nations.
Overall in February, the EU’s 27 states, Switzerland and Norway received about 69,000 asylum applications, following a decreasing trend that started in October 2024, the EUAA said.
Syrians, who long accounted for the most applicants, were the third largest group, behind Venezuelans and Afghans.
France was the main recipient nation, followed by Spain, and Germany — which had been the top destination for years.


UAE schools to teach AI in government schools from kindergarten up

UAE schools to teach AI in government schools from kindergarten up
Updated 39 min 2 sec ago
Follow

UAE schools to teach AI in government schools from kindergarten up

UAE schools to teach AI in government schools from kindergarten up

DUBAI: UAE Prime Minister Sheikh Mohammed bin Rashid announced on Sunday that artificial intelligence lessons would be introduced for public-school children of all ages starting the next academic year.

In a tweet on X, Sheikh Mohammed wrote that the UAE cabinet had approved “the final curriculum to introduce ‘Artificial Intelligence’ as a subject across all stages of government education in the UAE, from kindergarten to grade 12, starting from the next academic year.

“Our goal is to teach our children a deep understanding of AI from a technical perspective, while also fostering their awareness of the ethics of this new technology,” he continued.

“Our responsibility is to equip our children for a time unlike ours, with conditions different from ours.” 

The step aims to equip students with the essential knowledge and skills to understand AI concepts appropriate for each academic level. 

UAE Minister of Education Sarah Al-Amiri said this integration of AI into classrooms reflects the “UAE government’s future-focused vision,” according to a statement on WAM News Agency.

The UAE will be among the first countries to introduce AI in school curricula, the statement added.

The AI curriculum will cover seven key areas, including foundational concepts, data and algorithms, software use, ethical awareness, real-world applications, innovation and project design, and policies and community engagement. 


Mother and son killed in flash floods in southern Jordan

Mother and son killed in flash floods in southern Jordan
Updated 05 May 2025
Follow

Mother and son killed in flash floods in southern Jordan

Mother and son killed in flash floods in southern Jordan
  • The Belgian pair went missing as heavy rain caused flash floods across the country

JORDAN: The bodies were evacuated from the area, and an official investigation into the incident has been launched to determine the circumstances surrounding the tragedy.

A major search and rescue operation had been launched in Jordan after flash floods ripped through vast parts of the country at the weekend.

Hundreds of tourists were evacuated on Sunday as the floodwaters continued to rise.

The Petra Development of Tourism and Region Authority said heavy rain triggered flash floods in the city on Sunday.

A Public Security Directorate spokesman said specialized teams of personnel from Civil Defense, local police directorates, and the Gendarmerie Forces, conducted extensive search operations under what they described as “challenging weather conditions and difficult terrain”.

“Their efforts extended over many hours before the two victims were found deceased”, the report added.

Yazan Mahadin, commissioner of Petra Archaeology Park and Tourism at PDTRA said most of 1,785 tourists that visited on Sunday had been evacuated.

A further 14 who were trapped by floodwaters in the Western Ma’an Police Directorate were rescued uninjured.

Meanwhile a separate team was sent to Tafileh to search for a teenager who went missing while herding sheep in the Hasa area. 

The areas evacuated by the civil defense were Al-Khazneh, the Siq, the Roman Soldier’s Tomb, the Monastery, and the slopes of Prophet Harun.

Ticket sales to all major tourist attractions were suspended as a safety precaution, and the PDTRA is encouraging people to avoid flood paths and low-lying areas.


Lebanese army seizes Captagon pills, equipment at Syrian border

Lebanese army seizes Captagon pills, equipment at Syrian border
Updated 05 May 2025
Follow

Lebanese army seizes Captagon pills, equipment at Syrian border

Lebanese army seizes Captagon pills, equipment at Syrian border

CAIRO: The Lebanese Army seized large quantities of Captagon pills in a raid on a manufacturing plant on the Lebanese-Syrian border, the Lebanese News Agency reported on Monday. 

An army unit, supported by a patrol from the Directorate of Intelligence, seized large quantities of pills in addition to equipment for producing Captagon, along with raw materials used in drug manufacturing. 


Israel plans to capture all of Gaza under new plan, officials say

Israel plans to capture all of Gaza under new plan, officials say
Updated 32 min 47 sec ago
Follow

Israel plans to capture all of Gaza under new plan, officials say

Israel plans to capture all of Gaza under new plan, officials say
  • The new plan would push hundreds of thousands of Palestinians to southern Gaza and likely exacerbate an already dire humanitarian crisis
  • Israel halted all humanitarian aid into Gaza, including food, fuel and water, setting off what is believed to the be the worst humanitarian crisis in nearly 19 months of war
  • The UN accuses Israel of wanting to control aid as a ‘pressure tactic’

TEL AVIV: Israel approved plans on Monday to capture the entire Gaza Strip and remain in the territory for an unspecified amount of time, two Israeli officials said, in a move that if implemented would vastly expand Israel’s operations in the Palestinian territory and likely bring fierce international opposition.
Israeli Cabinet ministers approved the plan in an early morning vote, hours after the Israeli military chief said the army was calling up tens of thousands of reserve soldiers.
The new plan, which the officials said was meant to help Israel achieve its war aims of defeating Hamas and freeing hostages held in Gaza, also would push hundreds of thousands of Palestinians to southern Gaza, what would likely exacerbate an already dire humanitarian crisis.
Since a ceasefire between Israel and Hamas collapsed in mid-March, Israel has unleashed fierce strikes on the territory that have killed hundreds. It has captured swathes of territory and now controls roughly 50 percent of Gaza. Before the truce ended, Israel halted all humanitarian aid into Gaza, including food, fuel and water, setting off what is believed to the be the worst humanitarian crisis in nearly 19 months of war.
The ban on aid has prompted widespread hunger and shortages have set off looting.
Israel is trying to ratchet up pressure on Hamas
The Israeli officials said the plan included the “capturing of the strip and the holding of territories.” The plan would also seek to prevent the militant Hamas group from distributing humanitarian aid, which Israel says strengthens the group’s rule in Gaza. It also accuses Hamas of keeping the aid for itself to bolsters its capabilities. The plan also included powerful strikes against Hamas targets, the officials said.
The officials said Israel was in touch with several countries about President Donald Trump’s plan to take over Gaza and relocate its population, under what Israel has termed “voluntary emigration” yet which has sparked condemnations from Israel’s allies in Europe and the Arab world.
One of the officials said the plan would be implemented gradually. Both officials spoke on condition of anonymity because they were discussing military plans.
For weeks, Israel has been trying to ratchet up pressure on Hamas and prompt it to show more flexibility in ceasefire negotiations. But international mediators trying to bring the sides toward a new deal have struggled to do so. Israel’s measures do not appear to have moved Hamas away from its negotiating positions.
The previous ceasefire was meant to lead the sides to negotiate an end to the war, but that goal has been a repeated sticking point in talks between Israel and Hamas. Israel says it won’t agree to end the war until Hamas is defeated. Hamas meanwhile has demanded an agreement that winds down the war.
Israel’s expansion announcement has angered families of the hostages. The Hostage Forum, which supports families, said on Monday that the plan puts every hostage at risk and urged Israel’s decision-makers to secure a deal and prioritize the hostages.
At a Knesset committee meeting Monday, Einav Zangauker, whose son Matan is being held hostage, called on soldiers “not to report for reserve duty for moral and ethical reasons.”
Israel wants to prevent Hamas from handling aid
The Israeli officials did not disclose details on how the plan seeks to prevent Hamas from involvement in aid distribution. One said the ministers had approved “the option of aid distribution,” without elaborating.
According to an internal memo circulated among aid groups and seen by The Associated Press, Israel told the United Nations that it will use private security companies to control aid distribution in Gaza. The UN, in a statement Sunday, said it would not participate in the plan as presented to it, saying it violates its core principles.
The memo, sent to aid organizations on Sunday, detailed notes from a meeting between the Israeli defense body in charge of coordinating aid to Gaza, COGAT and the UN.
Under COGAT’s plan, all aid will enter Gaza through the Kerem Shalom crossing, letting approximately 60 trucks enter daily and distributing 20 kilograms of aid parcels directly to people on the day of entry, although their contents were unclear as was how many people will have access to the aid.
The memo said the aid will be distributed at logistics hubs, which will be run by private security companies. The memo said that facial recognition will be used to identify Palestinians at the hubs and SMS alerts will notify people in the area that they can collect aid.
Aid workers say the plan to centralize aid, rather than delivering it to Palestinians where they are, will forcibly displace people.
The fighting has displaced more than 90 percent of Gaza’s population, often multiple times, and turned Gaza into an uninhabitable moonscape.
The UN accuses Israel of wanting to control aid as a ‘pressure tactic’
The UN said the plan would leave large parts of the population, including the most vulnerable, without supplies. It said the plan “appears designed to reinforce control over life-sustaining items as a pressure tactic – as part of a military strategy.”
The memo says that the US government has voiced clear support for Israel’s plan, but it’s unclear who would provide funding for the private military companies or the aid.
COGAT and the US Embassy in Jerusalem did not immediately respond to a request for comment.
Earlier this week, the AP obtained dozens of documents about aid groups’ concerns that the hubs could end up permanently displacing Palestinians and forcing them to live in “de facto internment conditions”.
Meanwhile, Israeli strikes across Gaza continued overnight, killing at least 17 people in northern Gaza, according to hospital staff. Strikes hit Gaza City, Beit Hanoun and Beit Lahiya and among the dead were eight women and children, according to staff at the Shifa hospital, where the bodies were brought.
The war in Gaza began when Hamas-led militants attacked southern Israel, killing 1,200 people and taking about 250 hostages. Israel says 59 captives remain in Gaza, although about 35 are believed to be dead.
Israel’s offensive has killed more than 52,000 people in Gaza, many of them women and children, according to Palestinian health officials, who do not distinguish between combatants and civilians in their count.
Israel occupied Gaza in the 1967 Mideast war and withdrew troops and settlers in 2005. Two years later, Hamas took over and has controlled the territory since.