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)
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Updated 18 June 2024
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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.”
 


Gaza civil defense says 15 killed in Israel strike on Gaza school

Gaza civil defense says 15 killed in Israel strike on Gaza school
Updated 15 July 2024
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Gaza civil defense says 15 killed in Israel strike on Gaza school

Gaza civil defense says 15 killed in Israel strike on Gaza school
  • The Abu Araban school was housing “thousands of displaced people,” civil defense agency spokesman Mahmud Bassal told AFP, adding that most of the dead were women and children

GAZA STRIP, Palestinian Territories: The civil defense agency in Hamas-run Gaza said Sunday that 15 people were killed in a strike on a school sheltering war displaced where the Israeli military said it had targeted “terrorists.”
The strike on the UN-run Abu Araban site in central Gaza’s Nuseirat camp was the fifth on a school-turned-shelter in eight days.
The Abu Araban school was housing “thousands of displaced people,” civil defense agency spokesman Mahmud Bassal told AFP, adding that most of the dead were women and children.
Schools in Nuseirat were the target for two of the earlier school strikes as Israel keeps up its offensive against Hamas Palestinian militants who triggered the war with their October 7 attack on Israel.
The Israeli military said its air force “struck a number of terrorists who were operating in the area of UNRWA’s Abu Araban school building in Nuseirat.”
It said the building had “served as a hideout” and base for “attacks” on Israeli troops.
AFPTV images showed the three-story complex standing, with clothes and bedding airing out over its railings. A wall bearing the UN logo had been blown out, and rooms inside were damaged.
On July 6, Israeli aircraft hit Al-Jawni school, also run by the United Nations relief agency for Palestinian refugees (UNRWA), in Nuseirat. UNRWA said about 2,000 people were sheltering there at the time.
The following day, four people died in a strike on the church-run Holy Family school in Gaza City, in the territory’s north, according to the Civil Defense agency.
On Monday, Israel hit another Nuseirat school, again saying it was targeting “terrorists.”
The next day, a hospital source said at least 29 people died in a strike at the entrance to Al-Awda school in the Khan Yunis area, southern Gaza.
Israel says Hamas uses schools, hospitals and other public infrastructure for military purposes. Hamas denies the accusation.
France and Germany on Wednesday called for an investigation into the school strikes.
After the Al-Jawni strike, UNRWA spokesperson Juliette Touma told AFP that when the war began “we closed the schools and they became shelters.”
UNRWA is the main relief agency in Gaza but more than half, or 190, of its facilities have been hit — “some more than once” — in the military response to the October 7 Hamas attacks, she said.
 

 


As war rages, Palestinian culture stifled in Israel

As war rages, Palestinian culture stifled in Israel
Updated 14 July 2024
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As war rages, Palestinian culture stifled in Israel

As war rages, Palestinian culture stifled in Israel
  • About 20 percent of Israel’s 9.5 million inhabitants are Arab, and many of them identify as Palestinian

TEL AVIV: Comedian Ayman Nahas said he has kept a “low profile” since Oct. 7, fearing reprisals as an Arab artist in Israel while the country wages war in the Gaza Strip.
He is one of many Arab artists in Israel or annexed East Jerusalem who describe facing increasing hostility and harassment and fearing looming funding cuts or arrests.
“You never know where your place is, and that is not the right atmosphere to perform,” said Nahas, the artistic director at the Arabic-language Sard theater in Haifa, in Israel’s north.
He said that his theater depends on government subsidies “like 99 percent of cultural spaces” in Israel.
But he fears the money could be cut, as happened in 2015 to Al-Midan, another theater in the mixed Arab-Jewish city of Haifa, after it put on a play inspired by the story of a prisoner jailed by Israel over an attack on troops.
One 25-year-old performer, who asked to use the pseudonym Elias to avoid a backlash, said he has put acting aside and became a swimming pool attendant because he was fed up with only getting stereotyped roles.
Other Arab actors say that since the war, they can no longer find work in Israel. Elias has finally found a role in Berlin.
“I have had to go into exile to practice my art,” he said in a Tel Aviv cafe.
“I don’t wear my ‘Free Palestine’ bracelet anymore, and I take care of what I put on social media. I have friends who the police have visited.”
Nonprofit group Mossawa has documented an increase in human rights violations against Israel’s Arab minority since October, including arrests, discrimination at work, and harassment at schools, as well as curbs on the right to protest.
Singer Dalal Abu Amneh, who is also a neuroscientist, was detained for 48 hours for a social media post after Hamas’s Oct. 7 attack that said “the only victor is God.”
Abu Amneh later said she had been harassed in her Jewish-majority hometown of Afula in northern Israel. Her lawyer said she had received hundreds of “death threats.”
About 20 percent of Israel’s 9.5 million inhabitants are Arab, and many of them identify as Palestinian.
They say they are frequently the targets of discrimination by the Jewish majority, and those complaints have grown through more than nine months of war between Israel and Palestinian militants in Gaza.
Huda Imam, who promotes Palestinian cultural sites in Jerusalem, said that “a cultural silence has taken hold since Oct. 7.”
“There has been a shock, an inability to produce out of fear and respect” for the war’s victims, she added.
“There was a Palestinian cultural life before the war, especially in east Jerusalem,” Imam said, referring to the sector Israel captured in 1967 and later annexed in a move never recognized by most of the international community.
“Now people don’t go out.”
And it is primarily exiles “who give a voice to Palestine,” said Imam, highlighting the rapper Saint Levant, who played at the Coachella music festival in the US in April, and the European-based singer and flute player Nai Barghouti.
Palestinians still express themselves through their “living heritage, like drinking coffee or dancing dabkeh,” a traditional dance, said artist Hani Amra.
Some artists wondered about the relevance of their work now.
“You turn on the television, and you see the war live. The reality is more powerful than any artistic work,” Amer Khalil, the director of east Jerusalem’s Al-Hakawati, also known as the Palestinian National Theater.
The theater, founded in 1984, “has been closed more than 200 times in 40 years” and is again in the crosshairs of Israeli authorities, said Khalil.
“Running a theater is always difficult, but after Oct. 7 things became even more complicated,” he said, adding that Al-Hakawati was preparing a play about that day.
“It is a game, like censorship. It comes and goes.”

 


UAE delivers medical aid to Gaza after Israeli attack on refugee camps

UAE delivers medical aid to Gaza after Israeli attack on refugee camps
Updated 14 July 2024
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UAE delivers medical aid to Gaza after Israeli attack on refugee camps

UAE delivers medical aid to Gaza after Israeli attack on refugee camps
  • The initiative follows Israel’s targeting of displaced Palestinians at camps in Khan Younis on Saturday
  • The aid includes supplies for hospitals facing shortages, medicines for various injuries and insulin

DUBAI: The UAE delivered three tonnes of medical supplies and a range of medicines to support the healthcare sector and hospitals still operating in the Gaza Strip, the UAE state news agency reported on Sunday.

The initiative follows Israel’s targeting of displaced Palestinians at camps in Khan Younis on Saturday.

The medical aid includes medical supplies for hospitals facing shortages, medicines for various injuries, insulin for diabetic patients, and other solutions to bolster the healthcare sector during the crisis.

The UAE on Sunday condemned Israel’s attack on refugee camps in Khan Younis, which claimed the lives of 100 people.

Meanwhile, Saudi Arabia’s Ministry of Foreign Affairs on Saturday expressed its strongest condemnation and denunciation of what it termed “continued genocidal massacres against the Palestinian people at the hands of the Israeli war machine.”


Kuwait says government spending must be fixed to control budget growth

Kuwait says government spending must be fixed to control budget growth
Updated 14 July 2024
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Kuwait says government spending must be fixed to control budget growth

Kuwait says government spending must be fixed to control budget growth
  • Its statement added expenses were estimated at 24.5 billion dinars and revenues at 18.9 billion dinars

KUWAIT CITY: Kuwait's budget is projected to show a deficit of 5.6 billion dinars ($18.33 billion) for the 2024-2025 fiscal year, the Kuwait News Agency reported on Sunday citing the Ministry of Finance. 

Its statement added expenses were estimated at 24.5 billion dinars and revenues at 18.9 billion dinars.

Government spending must be fixed at 24.5 billion Kuwaiti dinars in the 2027-2028 budget to control budget growth, the ministry also said.

The liquidity of the General Reserve Fund, from which the budget deficit is financed, decreased to 2 billion dinars last March from 33.6 billion ten years ago due to increasing withdrawals, it added.


Egypt condemns Israeli airstrikes on Al-Mawasi area west of Khan Younis

Egypt condemns Israeli airstrikes on Al-Mawasi area west of Khan Younis
Updated 14 July 2024
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Egypt condemns Israeli airstrikes on Al-Mawasi area west of Khan Younis

Egypt condemns Israeli airstrikes on Al-Mawasi area west of Khan Younis
  • Egypt called on Israel to cease its disregard for the lives of unarmed civilians and to adhere to international humanitarian law

CAIRO: Egypt has condemned the Israeli airstrikes on the Al-Mawasi area west of Khan Younis in the southern Gaza Strip.

The deaths in Al-Mawasi, an Israeli-designated “safe zone” where aid groups said hundreds of thousands of people were sheltering, drew condemnation from governments across the region.

The Health Ministry in the Gaza Strip said at least 92 people had been killed, more than half of them women and children, and 300 wounded in Saturday’s strike

In a statement issued by the Ministry of Foreign Affairs, Emigration and Egyptian Expatriates, Egypt condemned in the strongest terms the Israeli bombing of Al-Mawasi, which is crowded with displaced people, resulting in the death and injury of dozens of innocent Palestinian civilians.

Egypt called on Israel to cease its disregard for the lives of unarmed civilians and to adhere to international humanitarian law.

It also stressed that such crimes would not be subject to a statute of limitations and could not be justified under any pretext.

Egypt emphasized that these continuous violations against Palestinian civilians add serious complications to the current efforts aimed at reaching de-escalation and a ceasefire and exacerbate their suffering amid disgraceful international silence and inaction.