The Yemeni economy is a competitive arena between the parties to the conflict
English - Tuesday 21 July 2020 الساعة 04:05 pm
Aden, Newsyemen, private:
The Yemeni economy remains a field of great political competition, as the Central Bank of Yemen - Aden still faces challenges in expanding its economic control in both the government-controlled areas and the Houthis.
The experts report on Yemen said that there is a major conflict between the government and the Houthis over control of strategic resources and associated revenues, including the major ports in Al Hodeidah, Ras Isa and Al Salif, the roadblock in Dhamar, and financial systems.
The experts' report concluded that important war economies have emerged in the country, with the local legitimate government, the Houthi group, and other militias collecting revenue in their areas, all claiming to manage or link to the authorities that manage, but the evidence for this is scarce.
The Houthis control commercial activity, receive taxes, and control banks, while the Hadi government has the legal right to print currency, receive loans and oil resources, and deal with the outside world and international financial institutions.
The Houthi militia continues to implement more prohibited economies, monetary and financial policies that seek to limit engagement with the government, institutions, and systems to protect their economic interests.
In addition to continuing to develop policies to protect their economic fields, such as the ban on the use and circulation of newly printed banknotes in the control of the Houthis, to limit the government's ability to implement an effective economic policy at the country level.
The Houthi militia withdrew funds from the Yemeni Central Bank branch in Hodeidah, which amounted to 35 billion riyals, which was deposited within six months of collecting import tariffs for commercial oil shipments in the salary initiative account, in implementation of the economic aspect of the Stockholm agreement that sparked the economic war again.
The economic war focused on two areas: controlling fuel imports and controlling the currency, and both crises sparked a 20% rise in prices, compared to 2019, and a fuel shortage that disrupted health, water and sanitation services.
The competition for regulation and taxes on fuel imports between the two parties to the conflict contributed to another decline in the value of the riyal, which caused the rise of food prices for the fifth year in a row.
