10.12.2016

A delegation from the Central Bank of Yemen (CBY), led by Dr. Monassar Al-Quaiti Governor of CBY and Mr. Abbas Al-Basha Vice-Governor, attended the 2016 Annual Meetings of the IMF and the World Bank Group in Washington DC from October 3-9, 2016. Productive consultative talks were held with the IMF’s Yemen mission team, and the delegation met as well with US government officials on the margins of the Annual Meetings.

The visit to Washington comes as part of CBY’s efforts to obtain technical assistance and mobilize donor resources. CBY has faced crippling challenges since last year, such as the fast depletion of its hard currency reserves, maintaining independence while operating under Houthi controlled Sanaa, suspension of foreign assistance and most recently, severe shortage of national currency stock in the central bank’s accounts. The shortages of currency in the accounts of CBY lead to its inability to honor payment of government salaries since July 2016. In addition, the fast depletion of the bank’s foreign exchange reserves rendered the bank not only incapable of fully servicing its external debt obligations, but also unable to subsidize the exchange rate for food and other vital goods imports.

Against the backdrop of the above-mentioned challenges, which have been endangering the well-being of the public and escalating the humanitarian conditions, the President of the Republic of Yemen undertook the decision to relocate the operations of the central bank to Aden in addition to appointing a new governor and a vice governor of the bank. It is worth noting that the legal term of the former board of directors of the central bank expired on August 6^th, 2016. The new leadership of CBY will operate from Aden using the existing institutional structure, payment system and financial infrastructure that is currently connecting the branches of the central bank, including Sanaa’s.

The Central Bank of Yemen has shared with the IMF and the World Bank a short-term strategic plan that addresses the bank’s pressing objectives. CBY is committed to resolving the bank note liquidity crunch to expedite the payment of government employees’ salaries across all governorates. CBY has already taken the necessary steps to issue bank notes with the aim of disbursing them throughout all central bank branches. This disbursement will enhance the ability of CBY’s branches to meet their outstanding obligations, including payment of salaries, which is consistent with the government’s economic policies and in line with the government’s 2014 budget.

CBY is also working jointly with the Government of Yemen to mobilize resources from the international and regional donor community to replenish the external accounts of CBY. Replenishing the reserves is essential to resuming the import financing of food and other core commodities. Additionally, replenishing the reserves will ensure that Yemen fully meets its external debt obligations and outstanding letter of credits for food imports.  Limited exports of hydrocarbon products have already been initiated from Masila, Hadramout, and revenue from the sale of hydrocarbon products is expected to start flowing to the external accounts of CBY.

CBY is committed to ensure the economic and financial stability of Yemen and aims to improve the poor humanitarian conditions. At the conclusion of CBY’s visit to Washington, Governor Al-Quaiti acknowledged the IMF and the World Bank for their positive collaboration, their valuable advice and technical assistance.

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Central Bank of Yemen

The Group of Ambassadors repeats its concern that actions taken by elements of the General People’s Congress and the Houthis as well as their supporters are making the search for a peaceful solution more difficult by unconstitutional and unilateral actions in Sanaa. These actions only increase the divisions in Yemen and will not address the political, economic, and security problems that are causing such widespread suffering throughout the country. We also express our concern about the escalation of violence and reiterate our call on all parties to immediately implement the cessation of hostilities. We call on all parties to deal responsibly with the efforts of the UN Special Envoy and to adhere to the references for a peaceful solution; the GCC Initiative and its Implementation Mechanism, the outcomes of the National Dialogue Conference, and relevant UNSC resolutions including 2216

Yemen Embassy in Washington D.C. Received a numerous number of letters  by American activists who demand for an immediate release of the Yemeni journalist and politicians that were kidnaped by ‪#‎Houthi_militia‬.

The Houthi coupists have been conducting horrendous clampdowns on journalists and politicians, who don’t agree with their politico-ideological discourse, since they staged a military putsch in late 2014  against the democratically-elected President Abd Rabbu Mansur Hadi.

Aden, Yemen — One year into the intervention here by the Arab coalition led by Saudi Arabia, and backed by the Yemeni National Army, I can tell my people with confidence that we are working hard to restore peace. The Houthi rebels’ military position has been weakened, and peace talks will resume next month. A cease-fire is to begin on April 10, leading up to the talks. The Houthis must respect it.
We must now direct our efforts to rebuilding our broken country.
Yemen’s war began in the summer of 2014 when the Houthi rebels, joined by soldiers loyal to former President Ali Abdullah Saleh, attacked the government’s armed forces in Amran. The rebels went on to occupy Sanaa, the capital, and overthrew Yemen’s legitimately elected government by force that September.
Before the Houthi-Saleh insurgents escalated their violence, my government had done everything possible to avoid an all-out war, and the country was undergoing a peaceful political transition. That process was derailed just as the country was putting into place the decisions of the National Dialogue Conference, a forum created by Yemenis and backed by the international community. The Houthis themselves were party to the conference discussions until they intensified their violence.
With our country in chaos, we were left with no choice but to call for the assistance of our brothers in Saudi Arabia and other Arab countries. Without intervention, Yemen’s future might have been that of a largely lawless and feudal country. Because of Yemen’s strategically significant location on the Gulf of Aden, the impact of continuing chaos would have been felt far beyond our borders — in the other Gulf countries, Europe and the United States.
Now my government and the coalition have shifted the balance of power on the ground. Nearly 75 percent of the land previously occupied by the Houthi-Saleh forces has been liberated, which is why they decided to participate in serious peace negotiations for the first time. We are already witnessing some results of these peace efforts as fighting along our border with Saudi Arabia has diminished.
My country, which boasts a proud heritage and culture dating back more than a thousand years, deserves a chance to thrive again.
Defeating extremism requires a coherent government that can provide services to its citizens. We are developing a post-conflict economic recovery program to help Yemen heal. But the world must stand by us as we work to rebuild our country. We urgently need international economic assistance. We especially need to provide employment to Yemen’s youth and take advantage of their enthusiasm for their country’s future.
Some progress has begun. With the help of our Arab and Islamic partners, most of the ministers of the government are back in the temporary capital, Aden, carrying out their duties. We hope that with the help of the United Nations the negotiations in April will lead to the reinstatement of Yemen’s peaceful political process and the implementation of the decisions of the National Dialogue Conference, which calls for the formation of a federal state. My government appreciates the United Nations’ work in assisting Yemen, and we will continue to support the efforts of Ismail Ould Cheikh Ahmed, the United Nations special envoy.
However, for there to be an agreement in the April talks, the Houthi-Saleh forces must accept United Nations Security Council Resolution 2216, which calls for all parties to abide by the peaceful political process and agree to a durable and lasting agreement that allows the government to begin the work of returning displaced people to their homes and repairing damage.
A final peace agreement must have uncompromising measures to uphold Yemen’s security.
We will shut down, once and for all, the terrorist safe havens and again work with the West and Arab partners to rid our territory of the extremists who plot attacks on targets in the United States, Europe, Arab states and elsewhere. Already, in the past two weeks, the government of Yemen started a campaign in Aden against terrorist organizations and militarized extremist groups. The campaign has normalized the security situation in Aden. Now my government is working to bring similar campaigns to other regions.
In addition, it must be made clear to Iran, which seeks to expand its sphere of control through its Houthi proxies, that Yemen will not yield a single inch of territory to outside forces.
I assumed the presidency in 2012 while my country was in a state of political turmoil and plagued by insecurity. Even before then, there were many longstanding unsettled issues. Now we must turn to the urgent task of reconciliation.
In the years before the Houthi-Saleh violence escalated into a civil war, Yemen was making significant progress through clearly defined guidelines laid out by the National Dialogue Conference. Using the same steps and measures, these guidelines must be adhered to when we address the repercussions of the Houthi-Saleh coup.
Our government extends its hand in a peace that is sustainable and does not compromise Yemen’s state-building process. While challenges remain, the country’s outlook is brighter today than at any time over the past year.
Violence has diminished, and negotiations are scheduled. Peace is attainable. We see a future in which Yemen is stable and thriving and provides equal opportunity, better living conditions and an equal place in society for all. We must not give up hope.
By President Abdu Rabbu Mansour Hadi

Source:

The New York Times.