Meeting of the Governor of Central Bank and FM with the Ambassadors of the group of 19 to discuss the economic and political situation

Meeting of the Governor of Central Bank and FM with the Ambassadors of the group of 19 to discuss the economic and political situation

Yemen's central bank governor Hafez Muaiad said Wednesday that the bank is currently focusing on currency stability, re-operating mechanisms for all bank transfers, resuming financial role in the banking sector and restoring it from the black market.

In a meeting with Yemeni Foreign Minister Khaled al-Yamani with the ambassadors of the group of 19 sponsoring the peace process in Yemen, Muaiad said that these mechanisms will enhance the ability to fight the financing of terrorism and money laundering.

Muaiad said the government has taken a series of decisions aimed at improving the economic situation and supporting the value of the Yemeni riyal without affecting the level of imports of goods and fuel.

He added that one of the most prominent of these resolutions is resolution No. 75 of 2018 to curb the smuggling of Iranian oil used by the Houthi militias to finance their war against Yemenis, explaining how the Houthis used the Iranian oil they receive free of charge and sell it on the black market to finance their war on the Yemeni people .

He said that in resolution 75, the mechanism focused on a set of conditions for the passage of remittances through the banking system under international standards to combat the financing of terrorism and money laundering, as well as to reduce currency speculation and help stabilize it.

He added that the letters of credit obtained by the merchants through the Saudi depository, through the usual and regular banking method, to finance food and basic imports are not used in any war efforts, and that these steps have somehow restored the financial cycle from the black market to the banking sector.

Muaiad said four months after the implementation of the mechanism, the Houthis gathered merchants in Sanaa to prevent them from dealing with the official mechanism of letters of credit provided by the central bank, threatening to impose harsh measures on those trying to deal with the new mechanism, and they have already arrested some merchants and some their relatives, with the aim of abolishing the banking mechanism, and re-entering Iranian oil.

He explained that the Government had created other alternatives that would be implemented.

He said the Houthis prevented banks in their areas of control from applying for credit for the importation of food items, imprisoned staff from some banks, summoned the heads of the boards of directors and forced them to sign pledges.

"In return, we are now working to take significant measures to deliver food imports to areas still under the control of Houthi militias," he added.

On the one hand, the ambassadors of the 19 countries said their governments would provide support to the Government, economic stability and relief of the humanitarian situation.

In the context, Foreign Minister Khalid al-Yamani said that members of  implementation of the Hodeidah agreement from the Office of the envoy and the Hodeidah mission failed to present a scheduled plan of action to implement the agreement, but on the contrary they worked on splitting the agreement into small and smaller steps, which gave the people the impression that they could manipulate the Stockholm Convention in general.

He stressed that the briefing by the Special Envoy of the Security Council in mid-April should be clear in identifying the party obstructing the implementation of the Agreement and taking responsibility, and not repeating the same method of holding those who call them parties responsible for failure in Hodeidah.

He called on the governments of the countries sponsoring the peace process to take urgent action to implement the Hodeidah agreement based on Security Council resolutions 2451 and 2452, as the Yemeni government sees failure as an option for the Hodeidah agreement.

"There is no other way but for the Houthi militias to implement the agreement and get out of Hodeidah, as the first necessary confidence-building step that will result from the implementation of the peaceful solution consultations in Yemen," he said.


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