Central Bank of Yemen

A political crisis has wracked the interim capital of Aden as the internationally recognized government struggles to deal with the plummeting Yemeni rial. The currency now trades at over YR2,000 to the dollar, having lost over a third of its value since the year began. Riven by political infighting and lacking the vision or tools to arrest the slide, an…

The ongoing economic conflict in Yemen escalated to include a fierce struggle between its bifurcated central bank for control over the nation's fractured monetary system and financial institutions. On June 26, the Central Bank of Yemen in Aden (CBY-Aden) issued a new directive, effectively banning banks and exchange outlets from working with unlicensed electronic payment companies. This move specifically targeted…

Yemen's microfinance sector is undergoing a radical transformation. Despite initial success in empowering small businesses, the ongoing conflict has exposed deep vulnerabilities. Competition between the fractured central banks has driven a surge in microfinance bank (MFB) licenses. While this promises to expand financial inclusion, it raises serious concerns about long-term sustainability and financial stability. Several other factors are driving the…

This report examines the implementation challenges facing organizations supporting women’s economic participation in Yemen. It explores how interventions can be strengthened to foster change in social norms and household dynamics, rather than simply provide short-term income for women. It argues that the short-term nature of international assistance is severely hindering Yemeni women’s economic empowerment and that a strategic shift in…

Threatened with new attacks, Saudi Arabia has forced the Yemeni government to abandon efforts to cut off the Houthi group (Ansar Allah) from the international banking system. Financial sanctions enacted by the government-aligned Central Bank of Yemen in Aden (CBY-Aden) were perhaps the government’s last card in its efforts to negotiate economic relief or affect the power imbalance ahead of…

Disputes over land and property can represent a serious obstacle to peace. Years of armed conflict break down legal protections and lead to extralegal actions like seizures, evictions, and land redistribution. Lack of protections can lead people to not feel secure in their homes or neighborhoods – and others feel empowered by absent oversight. As order leaves cities in Yemen,…

The re-designation of the Houthis as a Specially Designated Global Terrorist group (SDGT) by the Biden administration, which took effect on February 16, has sparked a complex debate. The move follows a series of Houthi missile attacks on commercial vessels in the Red Sea and Bab al-Mandab Strait. The designation allows the US Treasury to impose sanctions on individuals and…

Since April 2022, the war in Yemen has mutated from a high-casualty conflict to a protracted stalemate with relatively stable frontlines. The contest is now over the economy, as the Houthi group (Ansar Allah) leverages negotiations and its military power to put fiscal pressure on the internationally recognized government. The current phase has been marked by the expansion of economic…