04:35Residents of Sanaa have criticised the recent decision by the Central Bank of Yemen, based in Aden, to suspend transactions with six local commercial banks and withdraw old bills from the market. This move comes amidst escalating tensions between the Yemeni government and the Houthi faction.
"How are people supposed to survive without receiving their salaries? This decision will have a devastating impact on us," lamented one local resident.
Another resident highlighted the stark disparity in living conditions between individuals in Aden and Sanaa, noting that the exchange rate in Aden is 1 USD to 1750 Yemeni Riyal compared to 500 in Sanaa. "Our lives and theirs have been ruined," he added.
"Currently, a sort of economic or monetary cycle paralysis is in place or has been severely plummeted in the country which eventually harms the citizens, consumers and employees." another local said.
The Central Bank of Yemen issued a directive to all financial entities to cease transactions with the six main commercial banks due to their alleged collaboration with the Houthi group, designated as a terrorist organization. The decision to withdraw old bills was also part of this measure.
Central Bank Governor Ahmed Ghaleb emphasised that the decision to cut ties with these banks is a sovereign decision related to monetary and banking policies, distinct from external influences.
Yemen currently operates two competing central banks – one in Aden, recognised by international financial institutions and granted access to SWIFT, and another in Houthi-controlled Sanaa.
The exchange rates and financial activities in these regions are significantly impacted by the presence of these two central banks, leading to economic challenges and discrepancies in the country.
'Monetary cycle paralysis .. harms the citizens' - Yemenis react to poor economic conditions in Sanaa
Residents of Sanaa have criticised the recent decision by the Central Bank of Yemen, based in Aden, to suspend transactions with six local commercial banks and withdraw old bills from the market. This move comes amidst escalating tensions between the Yemeni government and the Houthi faction.
"How are people supposed to survive without receiving their salaries? This decision will have a devastating impact on us," lamented one local resident.
Another resident highlighted the stark disparity in living conditions between individuals in Aden and Sanaa, noting that the exchange rate in Aden is 1 USD to 1750 Yemeni Riyal compared to 500 in Sanaa. "Our lives and theirs have been ruined," he added.
"Currently, a sort of economic or monetary cycle paralysis is in place or has been severely plummeted in the country which eventually harms the citizens, consumers and employees." another local said.
The Central Bank of Yemen issued a directive to all financial entities to cease transactions with the six main commercial banks due to their alleged collaboration with the Houthi group, designated as a terrorist organization. The decision to withdraw old bills was also part of this measure.
Central Bank Governor Ahmed Ghaleb emphasised that the decision to cut ties with these banks is a sovereign decision related to monetary and banking policies, distinct from external influences.
Yemen currently operates two competing central banks – one in Aden, recognised by international financial institutions and granted access to SWIFT, and another in Houthi-controlled Sanaa.
The exchange rates and financial activities in these regions are significantly impacted by the presence of these two central banks, leading to economic challenges and discrepancies in the country.
Residents of Sanaa have criticised the recent decision by the Central Bank of Yemen, based in Aden, to suspend transactions with six local commercial banks and withdraw old bills from the market. This move comes amidst escalating tensions between the Yemeni government and the Houthi faction.
"How are people supposed to survive without receiving their salaries? This decision will have a devastating impact on us," lamented one local resident.
Another resident highlighted the stark disparity in living conditions between individuals in Aden and Sanaa, noting that the exchange rate in Aden is 1 USD to 1750 Yemeni Riyal compared to 500 in Sanaa. "Our lives and theirs have been ruined," he added.
"Currently, a sort of economic or monetary cycle paralysis is in place or has been severely plummeted in the country which eventually harms the citizens, consumers and employees." another local said.
The Central Bank of Yemen issued a directive to all financial entities to cease transactions with the six main commercial banks due to their alleged collaboration with the Houthi group, designated as a terrorist organization. The decision to withdraw old bills was also part of this measure.
Central Bank Governor Ahmed Ghaleb emphasised that the decision to cut ties with these banks is a sovereign decision related to monetary and banking policies, distinct from external influences.
Yemen currently operates two competing central banks – one in Aden, recognised by international financial institutions and granted access to SWIFT, and another in Houthi-controlled Sanaa.
The exchange rates and financial activities in these regions are significantly impacted by the presence of these two central banks, leading to economic challenges and discrepancies in the country.