Yemen Economic Bulletin: How currency arbitrage has reduced the funds available to address the humanitarian crisis

Yemen Economic Bulletin: How currency arbitrage has reduced the funds available to address the humanitarian crisis

The disparity between the official exchange rate and the market exchange rate of the Yemeni rial that developed during the current conflict led to large-scale profiteering through currency arbitrage. In particular, Yemeni banks exchanging foreign funds for international humanitarian organizations reaped significant profits at the expense of the intended aid recipients in Yemen.

The destabilizing legacy of US military aid and counterterrorism efforts in Yemen

The destabilizing legacy of US military aid and counterterrorism efforts in Yemen

ince the administration of United States President George W. Bush, Washington has provided military assistance to the Yemeni government under the stated goal of bolstering the Yemeni Armed Forces’ capacity to combat Yemen’s local branch of al-Qaeda. This assistance was fairly consistently provided up until the outbreak of the most recent conflict in 2015, irrespective of the domestic upheaval taking place in Yemen.

Iran and Houthis: Between political alliances and sectarian tensions

Iran and Houthis: Between political alliances and sectarian tensions

Houthis’ missiles targeting Saudi Arabia became more developed and far-reaching during the current war, thus prompting questions about Iran’s role in Yemen. Many stories circulated about Iran smuggling weapons to Houthis despite the blockade and tight control on all air, land and sea ports in the country. It is also believed that Iranian experts are developing Houthis’ weapon capacities.

Iran’s Role in Yemen Exaggerated, but Destructive

Iran’s Role in Yemen Exaggerated, but Destructive

Since March 2015, Saudi Arabia and ten other countries have been conducting a bloody airstrike campaign against the Houthi rebel forces in Yemen. The campaign, meant to counter what Saudis call the “Iranian Threat” in the Arabian Peninsula, had received limited support from the Obama Administration, but Saudi Arabia and its coalition partners are now operating with a freer hand from the Trump White House.

The endless battle in Taiz

The endless battle in Taiz

Taiz is the site of the longest-running battle ground in the Yemen war, which began when Houthi forces took over the city on March 25, 2015. Initially, the Houthis were confronted by peaceful demonstrations which they repressed heavily, killing six demonstrators in the process. The situation rapidly developed into armed conflict when the war erupted after the Houthis invaded the south, prompting the Saudi-led coalition to launch a counteroffensive on March 26, 2015. Taiz is centrally located in Yemen, and is the country’s third most populous city. Although large parts of Taiz were reportedly liberated from Houthi dominance, the “Taiz liberation operation” was never launched with serious intent.

Rapid currency depreciation and the decimation of Yemeni purchasing power

Rapid currency depreciation and the decimation of Yemeni purchasing power

International financial intervention is urgently needed to protect the value of the Yemen’s domestic currency. If this support is not forthcoming in the immediate near-term the Yemeni rial faces rapid depreciation; in a country that imports nearly 90 percent of its nutritional needs this depreciation would decimate the ability of most Yemenis to purchase food and other basic necessities.
The two-year-old civil war and regional military intervention in Yemen has already helped create the world’s largest food security emergency, with millions of people currently facing starvation; a steep decline in remaining per capita purchasing power would significantly accelerate the spread of famine.

The Limits of US Military Power in Yemen: Why Al Qaeda in the Arabian Peninsula continues to thrive

The Limits of US Military Power in Yemen: Why Al Qaeda in the Arabian Peninsula continues to thrive

Similar to US counterterrorism efforts in Yemen under President Barack Obama, the newly minted White House administration of Donald Trump has shown little appetite to explore non-military policy options to supplement the use of American firepower in Yemen. Indeed, shortly after taking office President Trump authorized the escalation of drone strikes and special forces operations in Yemen. The Trump administration’s 2017 budget proposal to congress also outlines massive cuts in US diplomatic and humanitarian spending, even as the UN declared last month that Yemen faces the largest food security emergency in the world. Such a myopic focus on the military option in the battle against Al Qaeda in the Arabian Peninsula (AQAP) indicates a failure to grasp why AQAP has expanded so successfully in Yemen despite well more than a decade of US counterterrorism efforts in the country.

Trump and the Yemen war

Trump and the Yemen war

Under the Obama administration, United States policy toward Yemen was largely driven by regional concerns and counter-terrorism initiatives, with the drone campaign targeting Al Qaeda leaders in Yemen today remaining among America’s most intense.

The Arab Spring uprisings, which reached Yemen in early 2011, complicated America’s regional relationships and seemed to sour Obama’s appetite for democratization. This became apparent in Yemen when the White House helped install a US-friendly administration in Sana’a after long-time ally President Ali Abdullah Saleh was ousted. Saleh was replaced with his own vice president, Abd Rabbu Mansour Hadi, who promptly announced plans to rout Al Qaeda’s Yemen franchise.

Beware of the failure of Yemen’s central bank

Beware of the failure of Yemen’s central bank

For the past 18 months, Yemen has been going through one of the most chaotic times of its modern history. Since the Houthi takeover of the capital, Sanaa, on Sept. 21, 2014, the country has been witnessing a gradual collapse of the state, which was accelerated when President Abed Rabbo Mansour Hadi left Sanaa for Aden and then for Riyadh. By March 2015, the Houthi rebel group was the de facto power running the country.

How US counterterror strategy has crashed and burned in Yemen – and what to try instead

How US counterterror strategy has crashed and burned in Yemen – and what to try instead

After 15 years of US efforts to combat terror and achieve stability in Yemen, a new study by Saferworld concludes that these efforts—as in the cases of Afghanistan andSomalia—have badly backfired. Today, Yemen requires not more military intervention, but strategies to counter corrupt and abusive government and to show its people that their security and rights matter.