Latest news with #IBY
Khabar Agency
10-05-2025
- Business
- Khabar Agency
Last Chance For Yemen: Experts Warn Only Bold Reforms Can Prevent Total Economic Collapse
The collapse of the Yemeni rial is no longer merely a symptom of prolonged military conflict but a stark indicator of systemic structural failures devastating Yemen's economy. Crippled by the absence of coherent monetary policies, a halt in oil exports, and rampant mismanagement, the country now faces unprecedented economic disintegration. This freefall threatens to trigger a total currency collapse, deepening the humanitarian catastrophe and intensifying the daily suffering of millions of Yemenis. On May 9, the Yemeni rial in government-controlled areas collapsed to unprecedented lows, trading at 2,534 riyals per US dollar (buying) and 2,552 (selling). Meanwhile, the Saudi riyal—a regional benchmark—exchanged at 666/669, starkly contrasting Yemen's economic freefall with its neighbors' stability. The Yemeni rial has plummeted by 72% in value since 2018, hemorrhaging nearly a third of its worth annually despite a $500 million Saudi deposit meant to stabilize it, according to the World Food Programme. This currency implosion has fueled spiraling hyperinflation: fuel prices have surged 33% and food costs 28% compared to 2024, part of a devastating 400% price explosion since 2018. "My salary is now equivalent to just $33, compared to $336 before the war, while the price of a bag of flour has surged from YR3,000 to over YR50,000". Civil servant Nabil Mohammed Saleh said. This has driven university academics in Aden, Lahj, Abyan, and Shabwa to protest on May 5, demanding salaries commensurate with pre-2015 purchasing power. Deeper Causes Than the War Economic experts contend that the crisis extends far beyond the war. According to analyst Khaled Al-Raimi, the halt in oil exports has cost Yemen $2 billion since October 2022, a devastating blow for an economy already crippled by near-total dependence on imports and critically depleted foreign reserves. "Halting exports has severed 70% of state revenue. This hemorrhage is compounded by the Houthi-imposed ban on new currency editions and rampant cross-border currency smuggling, which together have sabotaged monetary stability. Meanwhile, systemic rot within Yemen's banking sector, epitomized by the International Bank of Yemen (IBY), reached a breaking point in April 2023 when money laundering schemes prompted U.S. sanctions". Economic expert Waheed Al-Fouda'ei said. Hajj Expenses and Speculation Dr. Ali Al-Masbahi, a prominent economist, warned that the withdrawal of nearly $300 million in Q1 2025 to cover Hajj and Umrah expenses exacerbated Yemen's economic crisis, driving the exchange rate from 2,070 to 2,500 riyals per dollar. The absence of regulatory oversight by the Aden Central Bank has further enabled speculative practices by certain banks and currency exchanges. Economic sources accused the government of squandering 600 million allocated for electricity and spending180 million on the Aden refinery with no results, questioning the absence of a new refinery project in Hadramawt. Failed Rescue Attempts In late April, the Aden Central Bank, in coordination with the Money Exchangers Association, suspended foreign currency trading for 48 hours, leading to a slight recovery before the daily collapse resumed. However, the "Southern Money Exchangers Syndicate" expressed concern over threats to monetary stability. Al-Fouda'ei considers the decision temporary and insufficient for a fundamental solution. A bank source acknowledged that the halt in oil exports is the primary cause of the foreign currency shortage, though other factors exist. On April 29, the bank announced a 30 million, following previous auctions totaling 340 million, of which only $164 million (48%) was sold, according to Al-Masbahi, who believes the auctions failed to stabilize the exchange rate. In February, Yemen's Central Bank urged the Presidential Council to consolidate state revenues into a single treasury account and align expenditures with national priorities. While the bank confirmed it had proposed concrete measures - including restarting oil exports - these recommendations have yet to receive an official government response. UN Interventions Al-Fouda'ei accused the UN of double standards after pressuring the Aden Central Bank to backtrack on relocating banks from Sanaa, despite Houthi violations, including issuing non-compliant coins. For his part, Abdul Hamid Al-Masajedi, Chairman of the Media and Economic Research Forum, criticized the internationally recognized government for failing to take decisive action following the suspension of oil exports. He noted the administration had actually weakened its position by conceding strategic leverage - notably through permitting fuel shipments into Hodeidah. Al-Fouda'ei warned that maintaining the export suspension would leave Yemen able to cover just 40% of its budget deficit. He called for immediate crisis measures and a swift resumption of oil exports to avert economic collapse. Salaries in Dollars "Al-Masajedi criticized the practice of disbursing dollar-denominated salaries to officials abroad, warning it places undue strain on Yemen's dwindling foreign reserves. He called for stricter oversight of financial transfers between government-held and Houthi-controlled territories. "As a potential solution, he advocated implementing a unified exchange rate to reduce the disparity between the competing currency versions - though he acknowledged this might drive Houthi authorities toward informal financial channels". Experts have outlined a dual-track roadmap to salvage Yemen's economy, prioritizing urgent revenue generation alongside structural overhauls. First, resuming oil and gas exports—the state's fiscal backbone—could stem the bleeding, while creating a sovereign wealth fund would channel resource revenues into long-term stabilization. Concurrently, tightening banking oversight and cracking down on currency smuggling are critical to halting the financial system's disintegration. Reforms must also target systemic rot: imposing strict revenue controls, abolishing dollar-denominated salaries for officials and unifying the fractured currency system to curb hyperinflation. Crucially, none of this can succeed without leveraging international partnerships for technical aid and emergency financing. Yemen's economic survival now depends on two critical imperatives: courageous policy reforms to stabilize the financial sector, and unprecedented cooperation among stakeholders to address the worsening humanitarian emergency. Without immediate, coordinated action to restore monetary credibility and curb hyperinflation, the country risks irreversible economic collapse.
Yahoo
23-04-2025
- Business
- Yahoo
Trump tells DOD to move more forces equipped for combat into Middle East as US ups pressure on Houthis
President Donald Trump has officially informed Congress that he has directed the Department of Defense to move additional forces equipped for combat into the Middle East as U.S. forces carry out military strikes against Houthi militants in Yemen in an effort to stop attacks on American forces and commercial ships in the Red Sea. In a letter dated March 28 and released Tuesday, Trump told House Speaker Mike Johnson and Senate President Pro Tempore Chuck Grassley that he had directed the Department of Defense to increase U.S. military presence in the region and launch major strikes on Houthi-controlled areas. "I will no longer allow this band of pirates to threaten and attack United States forces and commercial vessels in one of the most important shipping lanes in the world," Trump wrote. "We will act to keep Americans safe." He said the U.S. will continue striking until the group no longer poses a threat to navigation or U.S. personnel. The strikes include Navy ships, Air Force bombers and drones targeting Houthi weapons, leadership and command centers. Trump Admin Imposes Sanctions Against Bank Of Yemen For Supporting Houthis Trump said the actions are consistent with his authority as commander in chief and in line with the War Powers Resolution, which requires Congress to be kept informed. Read On The Fox News App The letter comes as the Trump administration continues daily military operations in Yemen, now entering their fourth week. The airstrikes began after renewed Houthi threats against Israeli ships and attacks on U.S. forces, including three Reaper drones brought down since March 3. After Debilitating Strikes, Trump Tells Houthis: Stop Shooting At Us And 'We Will Stop Shooting At You' Last week, the administration sanctioned the International Bank of Yemen (IBY), accusing it of helping the Houthis move money internationally and avoid restrictions. The U.S. Treasury blocked assets tied to the bank and its leadership, including Chair Kamal Hussain Al Jebry and two top managers. "Financial institutions like IBY are critical to the Houthis' ability to fund attacks," said Deputy Treasury Secretary Michael Faulkender. The Treasury and State departments say the Houthis use the bank's access to the SWIFT global system to support terror operations, including oil purchases and weapons procurement. In March, Trump posted on Truth Social that "many" Houthi leaders had been killed in the recent strikes, saying the group has been "decimated" and warning Iran, their chief backer, that it could be next if the attacks continue. "The choice for the Houthis is clear," Trump wrote. "Stop shooting at U.S. ships, and we will stop shooting at you." The Houthis began ramping up attacks in the Red Sea after the October 2023 Hamas terror attack on Israel. They've claimed responsibility for targeting U.S. warships and have so far avoided hitting Chinese and Saudi ships, raising questions among defense officials about their strategic aims. Congress is expected to review Trump's report in the coming days as U.S. strikes News Digital's Greg Wehner, Brie Stimson and Caitlin McFall contributed to this article source: Trump tells DOD to move more forces equipped for combat into Middle East as US ups pressure on Houthis
Fox News
22-04-2025
- Business
- Fox News
Trump tells DOD to move more forces equipped for combat into Middle East as US ups pressure on Houthis
President Donald Trump officially informed Congress that he has directed the Department of Defense to move additional forces equipped for combat into the Middle East as U.S. forces carry out military strikes against Houthi militants in Yemen in an effort to stop attacks on American forces and commercial ships in the Red Sea. In a letter dated March 28 and released Tuesday, Trump told House Speaker Mike Johnson and Senate President Pro Tempore Chuck Grassley that he had directed the Department of Defense to increase U.S. military presence in the region and launch major strikes on Houthi-controlled areas. "I will no longer allow this band of pirates to threaten and attack United States forces and commercial vessels in one of the most important shipping lanes in the world," Trump wrote. "We will act to keep Americans safe." He said the U.S. will continue striking until the group no longer poses a threat to navigation or U.S. personnel. The strikes include Navy ships, Air Force bombers and drones targeting Houthi weapons, leadership and command centers. TRUMP ADMIN IMPOSES SANCTIONS AGAINST BANK OF YEMEN FOR SUPPORTING HOUTHIS Trump said the actions are consistent with his authority as commander in chief and in line with the War Powers Resolution, which requires Congress to be kept informed. The letter comes as the Trump administration continues daily military operations in Yemen, now entering their fourth week. The airstrikes began after renewed Houthi threats against Israeli ships and attacks on U.S. forces, including three Reaper drones brought down since March 3. Last week, the administration sanctioned the International Bank of Yemen (IBY), accusing it of helping the Houthis move money internationally and avoid restrictions. The U.S. Treasury blocked assets tied to the bank and its leadership, including Chair Kamal Hussain Al Jebry and two top managers. "Financial institutions like IBY are critical to the Houthis' ability to fund attacks," said Deputy Treasury Secretary Michael Faulkender. The Treasury and State departments say the Houthis use the bank's access to the SWIFT global system to support terror operations, including oil purchases and weapons procurement. In March, Trump posted on Truth Social that "many" Houthi leaders had been killed in the recent strikes, saying the group has been "decimated" and warning Iran, their chief backer, that it could be next if the attacks continue. "The choice for the Houthis is clear," Trump wrote. "Stop shooting at U.S. ships, and we will stop shooting at you." The Houthis began ramping up attacks in the Red Sea after the October 2023 Hamas terror attack on Israel. They've claimed responsibility for targeting U.S. warships and have so far avoided hitting Chinese and Saudi ships, raising questions among defense officials about their strategic aims.
Yahoo
17-04-2025
- Business
- Yahoo
Trump admin imposes sanctions against Bank of Yemen for supporting Houthis
The Trump administration announced sanctions against the International Bank of Yemen Y.S.C. (IBY) on Thursday for its financial support of Houthi terrorists. Along with the bank, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) is sanctioning key leaders of IBY, like its Chairman of the Board of Directors Kamal Hussain Al Jebry; Executive General Manager Ahmed Thabit Noman Al-Absi and Deputy General Manager Abdulkader Ali Bazara. By sanctioning IBY, the U.S. hopes to stop Houthi attacks on commercial ships in the Red Sea. "Financial institutions like IBY are critical to the Houthis' efforts to access the international financial system and threaten both the region and international commerce," Deputy Secretary of the Treasury Michael Faulkender said. "Treasury remains committed to working with the internationally recognized government of Yemen to disrupt the Houthis' ability to secure funds and procure key components for their destabilizing attacks." Based in Sana'a, Yemen, the IBY is controlled by the Iran-backed Houthis and provides the group with access to the bank's Society for Worldwide Interbank Financial Telecommunications (SWIFT) network to make international financial transactions, the Treasury said. Trump Takes Swipe At Biden, Says Us Will Support Somalia Against Houthis The IBY, for instance, has allegedly aided Houthi businesses and officials to pursue oil on the SWIFT network, while also facilitating attempts by the terrorist group to evade sanctions oversight. Read On The Fox News App Under Thursday's sanctions, all property and interests in property of the leaders named, that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. Additionally, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Trump Touts Airstrike On Houthis, Showing Video: Will 'Never Sink Our Ships Again' OFAC's regulations generally prohibit all transactions by U.S. persons or within, or transiting, the United States that involve any property or interests in property of designated or otherwise blocked persons. U.S. State Department spokesperson Tammy Bruce spoke about the sanctions during a press briefing Thursday, sending a message to anyone who supports foreign terrorist organizations like the Houthis. Us Forces Carry Out Airstrike In Southern Somalia, Killing 3 Al-shabaab Terrorists "The United States is committed to disrupting the Houthi financial networks and banking access as part of our whole-of-government approach to eliminating Iran's threat network," she said. "Moreover, we can confirm the reporting that Chang Guang Satellite Technology Company Limited (CGSTL) is directly supporting Iran-backed Houthi terrorist attacks on U.S. Interests. Their actions and Beijing's support of the company, even after our private engagements with them, is yet another example of China's empty claims to support peace. She continued, urging partners of the U.S. to judge the Chinese Communist Party and Chinese companies on their actions, and not just their words. "Restoring freedom of navigation in the Red Sea is a priority to President Trump," Bruce said. "Beijing should take this priority seriously when considering any future support of CGSTL. The United States will not tolerate anyone providing support to foreign terrorist organizations such as the Houthis."Original article source: Trump admin imposes sanctions against Bank of Yemen for supporting Houthis
Fox News
17-04-2025
- Business
- Fox News
Trump admin imposes sanctions against Bank of Yemen for supporting Houthis
The Trump administration announced sanctions against the International Bank of Yemen Y.S.C. (IBY) on Thursday for its financial support of Houthi terrorists. Along with the bank, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) is sanctioning key leaders of IBY, like its Chairman of the Board of Directors Kamal Hussain Al Jebry; Executive General Manager Ahmed Thabit Noman Al-Absi and Deputy General Manager Abdulkader Ali Bazara. By sanctioning IBY, the U.S. hopes to stop Houthi attacks on commercial ships in the Red Sea. "Financial institutions like IBY are critical to the Houthis' efforts to access the international financial system and threaten both the region and international commerce," Deputy Secretary of the Treasury Michael Faulkender said. "Treasury remains committed to working with the internationally recognized government of Yemen to disrupt the Houthis' ability to secure funds and procure key components for their destabilizing attacks." Based in Sana'a, Yemen, the IBY is controlled by the Iran-backed Houthis and provides the group with access to the bank's Society for Worldwide Interbank Financial Telecommunications (SWIFT) network to make international financial transactions, the Treasury said. The IBY, for instance, has allegedly aided Houthi businesses and officials to pursue oil on the SWIFT network, while also facilitating attempts by the terrorist group to evade sanctions oversight. Under Thursday's sanctions, all property and interests in property of the leaders named, that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. Additionally, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. OFAC's regulations generally prohibit all transactions by U.S. persons or within, or transiting, the United States that involve any property or interests in property of designated or otherwise blocked persons. U.S. State Department spokesperson Tammy Bruce spoke about the sanctions during a press briefing Thursday, sending a message to anyone who supports foreign terrorist organizations like the Houthis. "The United States is committed to disrupting the Houthi financial networks and banking access as part of our whole-of-government approach to eliminating Iran's threat network," she said. "Moreover, we can confirm the reporting that Chang Guang Satellite Technology Company Limited (CGSTL) is directly supporting Iran-backed Houthi terrorist attacks on U.S. Interests. Their actions and Beijing's support of the company, even after our private engagements with them, is yet another example of China's empty claims to support peace. She continued, urging partners of the U.S. to judge the Chinese Communist Party and Chinese companies on their actions, and not just their words. "Restoring freedom of navigation in the Red Sea is a priority to President Trump," Bruce said. "Beijing should take this priority seriously when considering any future support of CGSTL. The United States will not tolerate anyone providing support to foreign terrorist organizations such as the Houthis."
