The Minister of Finance clarifies the reality of negotiations to neutralize the central bank and unify the currency
English - Saturday 19 August 2023 الساعة 07:43 pm
Aden, NewsYemen:
The Minister of Finance in the parity government, Salem bin Brik, revealed the truth about the negotiations sponsored by the United Nations regarding the neutralization of the Central Bank and the unification of the paper edition of the local currency in circulation in the liberated areas and areas under the control of the terrorist Houthi militia.
Salem bin Brik, in an interview published by Okaz Weekly, said, "There are still no real negotiations in this regard, and everything that has been raised about this issue or put forward in this regard is just ideas and initiatives that came from several parties, but they have not fully crystallized or entered a stage." Negotiations, despite our keenness in the government from the beginning to neutralize the economy, and seek to mitigate the effects of the economic war that Al-Houthi launched from the beginning.
He added that the government made great efforts to prevent economic collapse; Whether that resulted from the war waged by the Houthi militia against the Yemeni people or as a result of Houthi's use of economic war as one of the tools in his war, he is indifferent to the consequences of that tampering that he practices, pointing to the size of the large and exorbitant bill that Yemen paid as a result of this war and the coup against state institutions.
He explained that economic experts estimate the cumulative losses of the Yemeni economy as a result of the war at more than 126 billion dollars, especially since the militia practiced, during a period of eight years, multiple methods of looting and stealing money to enhance its parallel and hidden economy, and according to what was monitored by SAM Organization for Rights and Freedoms.
He pointed out that the militias confiscated the money withheld through the so-called judicial guard in the bank accounts of 1,250 people and more than 100 private commercial activities, including 38 major companies; The amount of 1,700,000,000 dollars, in addition to two billion real estate, in addition to the looting and collection of public funds under multiple religious and national names; Including confiscating the funds of the institution, the General Authority for Insurance, and military and security retirement funds, which amount to hundreds of billions, and depriving retirees of their most basic rights and receiving their salaries.
The Minister of Finance refused to hold the decision to transfer the central bank to the capital, Aden, responsible for the economic collapse in the liberated areas, and said that the transfer of the central bank to Aden represented a major shift in the course of the battle in the way of restoring the Yemenis to their state, and saving what could be saved after the Houthis took control of the central bank’s funds Including the salaries of employees, and the bank became unable to pay salaries after its coffers were emptied.
He added that this decision came after the legitimacy had been waiting to take this step. Keen to spare the economy the repercussions of the Houthi war, but that seemed impossible, and the Central Bank started working from scratch, and it was not possible to withdraw the old currency that had been emptied from the bank, and at a time when the printed local currency was supposed to replace the old currency Al-Houthi went far in his war against the Yemeni people in preventing the circulation of the new currency in the areas under his control, without regard for the consequences of that, in a clear doubling of the suffering of the citizens.
The minister acknowledged the tragic and difficult situation that the country is going through due to the collapse of the national currency, and pointed out that the per capita income has been eroded due to the high rates of inflation and has become no longer meeting the minimum living requirements, which has led to an increase in the population below the poverty line to more than 20 million people, noting that the importance of the support provided by donor organizations and countries; To which the Kingdom contributes greatly, and its impact on alleviating the human suffering of the Yemeni citizen, and the government is working hard; According to the available capabilities, in order to maintain the stability of the national currency and limit its deterioration.
The minister touched on the challenges facing the government, including the shrinkage of the gross domestic product, the cessation of a large part of economic activities, the cessation of government investment programs, as well as a significant decline in private investments, the withdrawal of most foreign investors, the exit of domestic capital abroad in search of a safe environment, and the suspension of many from foreign grant and loan programs, and the division of Yemen into two monetary and economic zones; As a result of the measures imposed by the coup militia, which prevented the circulation of new banknotes in the areas under their control.
He pointed to the decline in public revenues, despite their scarcity, due to the targeting of oil export ports by the Houthi militia, the cessation of oil exports, and the transfer of ships to the port of Hodeidah, and thus the decline in tax and customs revenues. Stressing that this represented a major challenge to public financial sustainability, and thus the increase in the budget deficit and the rise in public debt rates, in addition to the militia’s continued closure of roads, and this also caused an increase in human suffering in terms of an increase in transportation costs; Which in turn was reflected in the rise in commodity prices.
He added that the political tensions have an impact on the exchange rates of the currency, the rise in inflation rates, and thus an increase in the number of people below the poverty line, an increase in human suffering, and international humanitarian organizations reducing the support provided to Yemen.
Minister Salem bin Brik believes that the solution to get out of the tense reality is to restore the government to collect all its resources from the local and foreign currencies, re-export oil and gas, which is the main source of providing hard currency, and end the current monetary division between liberated and unliberated areas, and take the necessary measures to prepare the climate. And a safe environment to move economic activity in the liberated areas, in addition to taking the necessary and strict measures against speculators in exchange rates, and putting an end to those who tamper with the exchange markets and transferring support provided by donor organizations and countries through the Central Bank, and imposing some security, political and other measures.
