Yemen’s Central Bank says outward transfers will be activated soon

Yemeni commercial banks have been informed that outward transfers will be activated soon, but they are required to meet some simple conditions, the Central Bank’s Deputy Governor Khaled al-Abbadi said.

“Most Yemeni banks are responding positively and showing willingness to comply with the conditions and to perform their role,” Abbadi told Asharq Al-Awsat. Some of the conditions are: providing necessary data such as their budget, statistics and the plan to transform their headquarters to Aden in addition to other obligations.

When asked how the support for Yemen’s commercial banks would benefit Yemeni citizens, he said the Central Bank’s move would provide sufficient liquidity for the financial system. Consequently, salaries would be paid on time, in addition to witnessing an increase in imports.

Abbadi affirmed that Yemen’s account in the US Federal Reserve would receive the whole revenues. Before opening the account, there were some challenges and obstacles. The first was represented in contacting the other party (Houthi and Saleh) and second tackling all US concerns and responding to all remarks.

His statement was made after he departed from Bank of England in London, when he asserted that he seeks restoring relations between the Yemen Central Bank and the Bank of England that has contributed 53 years ago in the establishment of the first central bank in the Arabian Peninsula.

Abadi added that a work plan has been agreed upon to re-normalize the Yemeni public account in the Bank of England. It is “the biggest account in sterling and we can carry out banking operations worldwide through it.”