CATF Reports Jun. 16, 2016, 3:33pm

The Saudi-owned pan-Arab newspaper Asharq Al-Awsat revealed today that the international community is apparently inclined to suspend funds to the Central Bank of Yemen (CBY), which the newspaper argues is controlled by Houthi insurgents. Probably in reference to last month’s disappearance of $4 billion from the Bank announced by Yemen’s Foreign Minister Abdel Malek al-Mekhlafi, Alsharq Al-Awsat stressed that the international community is aware that insurgents seized funds for military purposes, an episode that allegedly reinforces the newspaper’s claim.

According to a recent Reuters report, the Central Bank of Yemen has been working hard to stay neutral in order to keep the economy and the food distribution – both severely compromised since the beginning of the civil war – running. Although based in the Yemeni capital Sana’a, controlled by Houthi insurgents since 2014, CYB has continuously paid salaries to both soldiers affiliated with the Houthis and to state employees working on Houthi-controlled territory. So far, IMF Mission of Chief for Yemen Albert Jaeger commented, the Central Bank’s efforts at maintaining neutrality in such a critical political and security setting have been overall successful.

One can infer that the timing of the Alsharq Al-Awsat report is hardly coincidental, and more likely ascribable to Saudi efforts to influence the ongoing UN-brokered Yemeni peace talks in favor of the Yemeni government at a critical time for the conflict. Saudi Arabia has vocally backed a diplomatic and peaceful settlement of the civil war, and yet it has never shied away from aggressive offensives, especially in Yemen – from cluster bombs to media manipulation.


From Alsharq Al-Awsat:

Asharq Al-Awsat newspaper learned that the international community knows that the insurgents seized monetary reserve in the Central Bank, claiming it was for military purposes.

Information revealed that there is an inclination towards halting any funds to Central Bank that is controlled by the insurgents.

Sources indicated that Minister of Finances Monser al-Kaeiti met with ambassadors of the 18 countries in Kuwait. During the meeting, the minister presented the financial situation with utmost transparency, and tried to reveal the truth to some deluded members of the international community about the Central Bank.”

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