Yemen Monitor / Newsroom:
The Houthi group, through the central bank under its control in Sana’a, has issued new directives prohibiting banks and money exchange companies from conducting any transactions or submitting requests on behalf of importers to the Central Bank in Aden or to financial institutions affiliated with the internationally recognized Yemeni government.
According to the circular, the decision came in response to what the group described as “escalatory measures” by the legitimate government, accusing it of imposing restrictions on import operations and increasing the burdens on traders.
The Houthi authorities stressed that any bank or exchange company violating the instructions would face penalties and legal action, affirming that the ban covers all types of imported goods under the pretext of protecting the “public interest.”
Economic experts view this move as an attempt by the Houthis to tighten their control over banking activity in areas under their influence and to sever ties with the country’s official financial system.
They note that the measure allows the group to control the flow of foreign currency and profit from exchange rate differentials, but at the same time, it increases traders’ reliance on the black market and doubles the cost of imports.
Observers warn that the impact of the decision will be felt immediately in the prices of basic commodities, adding further burdens on citizens already grappling with a dire livelihood crisis.
