STC website

STC supports Central Bank's decisions


Sun, 02-06-2024 08:21 PM, Aden

Aden (South24) 

Today, the Southern Transitional Council (STC) announced its support for the recent decisions of the Central Bank of Yemen to relocate the headquarters of banks in the Houthi-controlled Sanaa to Aden.

The announcement came during a meeting of the STC Presidency, attended by the ministerial bloc of the STC, which is part of the internationally recognized government.

A statement released on the STC’s official website said the meeting discussed the recent decisions of the Aden-based Central Bank, the expected effects of the move on exchange rate stability, and their future policies regarding the banking and financial sector.

"The Presidency confirmed its support for any decisions that would curb the terrorist Houthi militia and its efforts to harm the banking sector," the statement added.

The STC called on the Central Bank administration to continue its efforts and reform measures for the banking sector and financial policies.

It emphasized the availability of liquid local and foreign currency, which enables state institutions to fulfill their transactional obligations and maintain the stability of exchange rates.

The meeting also discussed what was described as a “matrix of urgent solutions” to the current service and economic crises, particularly the electricity fuel crisis and the decline of the Yemeni rial’s price.

On May 30, the Central Bank in Aden issued a decision to end dealing with six commercial banks with headquarters located in Houthi-controlled Sanaa.

The Central Bank justified its decision by claiming these banks had not complied with its instructions, violated the rules of banking business and the provisions of the law, and dealt with the Houthis, which is designated as a terrorist group.

On April 2, the Central Bank set a time limit of 60 days for all Sanaa-based banks to move their headquarters to the capital, Aden. Today, Sunday, the deadline officially expired.

Related: CBY announces measures targeting Houthi economy 

In a separate decision, the Aden Central Bank gave institutions and individuals 60 days to deposit all denominations of the old Yemeni riyal printed before 2016, which the Houthis deal in.

As part of the Houthis' reaction, on May 31, the Sanaa Central Bank issued a decision banning dealing with 13 banks operating from Aden, including two government banks.

Related: The Aden CBY’s Deadline for Banks to Move their Headquarters is about to Expire 

The Houthis accused the targeted banks of disclosing secrets and data to hostile entities.

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