Central Bank of Yemen

The Houthi group (Ansar Allah) has thrust Yemen into the international limelight and put regional politics in turmoil with an escalating series of high-profile attacks on Red Sea shipping. The Houthis have launched dozens of drones and missiles at ships since October and captured the commercial ship Galaxy Leader in a striking airborne commando raid (see Military section). Declaring solidarity…

The seizure of an Israeli-linked ship by Houthi forces in the Red Sea and repeated attacks on commercial shipping threaten to pile additional pressure on Yemen’s economy by raising the costs of imports. Shipping to Yemen already incurs increased transport and logistics costs due to its designation as a “high risk” area. According to a 2021 UNDP assessment, war premiums,…

Prime Minister Maeen Abdelmalek Saaed denied allegations of corruption against his government made in a parliamentary report during a press conference on September 4. The alleged violations include mismanagement and corruption amounting to YR2.8 trillion (approximately US$1.9 billion) across the electricity, energy, telecommunications, and financial sectors. Saaed attacked the report of a parliament fact-finding committee, calling the accusations malicious and…

Long-waited financial support for the government finally materialized after it reached a dire fiscal situation in June and July. On August 1, Saudi Arabia announced it would support the internationally recognized government with a US$1.2 billion grant to finance the public budget and prop up the value of the Yemeni rial. Saudi Ambassador to Yemen Mohammed al-Jaber stated that the…

The government-held port of Aden received the commercial ship Blue Nile on April 8, without it being subject to inspection by the Saudi-led coalition at Jeddah, a first since the expansion of the conflict in 2015. The arrival followed a statement released by Aden Governor Ahmed Hamed Lamlas on April 4, encouraging shipping companies to operate direct routes to the…

Presidential Leadership Council (PLC) chief Rashad al-Alimi formally announced the formation of the Nation’s Shield forces in late January, a Saudi-funded military force of eight battalions led by Salafi commander Bashir al-Madrabi that was officially declared last September, but which is composed of Al-Yemen Al-Saeed brigades formed over the previous year. The units operate directly under Al-Alimi, who, unlike most…

On February 21, Saudi Arabia agreed to supply the Central Bank of Yemen (CBY) in Aden with a US$1 billion deposit to prop up Yemen’s faltering economy and support the value of the rial in government-held areas. The aid will not be deposited directly with the CBY-Aden, but rather handled through the Arab Monetary Fund (AMF) as part of the…