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Yemen-Economic Divide/New Coin
Sanaa, Yemen - March 30, 2024 (CGTN - No access Chinese mainland)
1. Building of Central Bank of Yemen
2. SOUNDBITE (Arabic) Hashim Ismail, Governor, Central Bank of Yemen(starting with shot 1):
"Today, we announce the release of a new coin with a value of 100 Yemeni riyals, which will start circulating as of Sunday, March 31."
3. Press conference in progress
4. Screen showing demonstration animation of newly released coin
5. Press conference in progress
6. Various of logo, sign of Central Bank of Yemen on wall
7. SOUNDBITE (Arabic) Rashid Al Haddad, economic analyst (starting with shot 6/ending with shot 8):
"The main impact of relocating the central bank to Aden is the creation of a cash split between Sanaa and the southern and eastern provinces, leading to a rise in currency exchange rates."
FILE: Sanaa, Yemen - Feb 7, 2024 (CGTN - No access Chinese mainland)
8. Traffic in alley
9. Various of currency exchange outlets
10. Various of staff member counting banknotes
Sanaa, Yemen - March 30, 2024 (CGTN - No access Chinese mainland)
11. Various of building of Central Bank of Yemen
12. Various of vendors counting damaged banknotes in grocery store
13. SOUNDBITE (Arabic) Mohammed Al Sharabi, local resident (starting with shot 12):
"Since the Central Bank moved from Sanaa to Aden in 2016, we have been suffering greatly. Firstly, there's the halt in government salaries, and secondly, the worn-out currency is not accepted by shop owners, bus owners, or even clothing sellers."
14. SOUNDBITE (Arabic) Moatasem Abdul Salam, local resident:
"Regarding transfers, when our families and relatives in Aden want to send money to Sanaa, the transfer commission rate is as much as 150 percent of the transferred amount. This creates significant hardship."
15. Various of vendors counting, organizing damaged banknotes
16. Traffic
Yemen - Recent (CCTV - No access Chinese mainland)
17. Various of city view, buildings, traffic
The Houthi-controlled Central Bank of Yemen, headquartered in the capital of Sanaa, unveiled its plan to circulate a new 100-riyal coin starting Sunday, raising concerns of deepened economic fracturing.
The country in the south of the Arabian Peninsula has been plagued by a decade-long civil war that has split its society in two. The divide extends to the financial sector, with two central banks operating in the country -- one run by the Houthis and the other by the internationally recognized government.
In a move seen as an attempt to bolster Houthi financial legitimacy and combat the rejection of outdated banknotes, Hashim Ismail, governor of the Central Bank of Yemen in Sanaa, announced on Saturday the issuance of the new coin to substitute bills of the same denomination that have been rendered damaged and unusable.
"Today, we announce the release of a new coin with a value of 100 Yemeni riyals, which will start circulating as of Sunday, March 31," said Ismail, speaking at a press conference.
However, the government-controlled Central Bank of Yemen, based in the country's temporary capital of Aden, swiftly rebuffed the Houthi plans in a strongly-worded statement. It warned all parties against utilizing "any currency issued by the bank's Sanaa branch seized by the Houthi militia."
The statement described the Houthi coin launch as "a dangerous and unlawful escalatory act" that fails to consider citizen interests. It denounced the new currency as "counterfeit" since it was issued "by an illegal entity."
On Tuesday, the government's central bank gave all banks operating in the country a 60-day deadline to move their headquarters from the Houthi-controlled capital Sanaa to the country's southern port city of Aden.
In a decision announced on the bank's website, Bank Governor Ahmed Ghalib warned that any banks defying the order will face potential legal action under Yemen's anti-money laundering and counter-terrorism financing laws, potentially risking the freezing of their assets.
In 2016, two years after the outbreak of the conflict, the government's central bank moved from the capital of Sanaa to the city of Aden. According to experts in the country, the move has created swaths of complications for Yemen's economy.
"The main impact of relocating the central bank to Aden is the creation of a cash split between Sanaa and the southern and eastern provinces, leading to a rise in currency exchange rates," said Rashid Al Haddad, an economic analyst.
The financial rift has destabilized exchange rates in a country where two separate monetary authorities issue different versions of the national currency.
The Houthis have blamed the Aden-based central bank for driving up inflation by printing new money. Notes issued by the bank are banned in Houthi-controlled regions.
War-time operational issues have prevented the Sanaa central bank from printing new money, further fueling a liquidity crisis.
Large quantities of outdated damaged paper notes held by the bank are being rejected as payment, much to the dismay of consumers and traders.
"Since the Central Bank moved from Sanaa to Aden in 2016, we have been suffering greatly. Firstly, there's the halt in government salaries, and secondly, the worn-out currency is not accepted by shop owners, bus owners, or even clothing sellers," said Mohammed Al Sharabi, a Sanaa resident.
"Regarding transfers, when our families and relatives in Aden want to send money to Sanaa, the transfer commission rate is as much as 150 percent of the transferred amount. This creates significant hardship," said Moatasem Abdul Salam, another resident.
There are reports the central bank in Sanaa also aims to replace other damaged denominations of paper currency with new ones of the same value.
Yemen has been embroiled in a protracted armed conflict since late 2014, when the Iran-backed Houthi rebels seized control of the capital Sanaa, compelling the internationally recognized government to relocate its operations to the southern port city of Aden as a provisional capital.
As the conflict enters its tenth year, Yemen finds itself in the throes of a calamitous humanitarian crisis. According to United Nations data, over half of the country's population is in desperate need of assistance, with an estimated 17.8 million people, 50 percent of them children, requiring health aid.
Yemen-Economic Divide/New Coin
Dateline : March 30, 2024/File
Location : Sana'a,Yemen
Duration : 2'18
Sanaa, Yemen - March 30, 2024 (CGTN - No access Chinese mainland)
1. Building of Central Bank of Yemen
2. SOUNDBITE (Arabic) Hashim Ismail, Governor, Central Bank of Yemen(starting with shot 1):
"Today, we announce the release of a new coin with a value of 100 Yemeni riyals, which will start circulating as of Sunday, March 31."
3. Press conference in progress
4. Screen showing demonstration animation of newly released coin
5. Press conference in progress
6. Various of logo, sign of Central Bank of Yemen on wall
7. SOUNDBITE (Arabic) Rashid Al Haddad, economic analyst (starting with shot 6/ending with shot 8):
"The main impact of relocating the central bank to Aden is the creation of a cash split between Sanaa and the southern and eastern provinces, leading to a rise in currency exchange rates."
FILE: Sanaa, Yemen - Feb 7, 2024 (CGTN - No access Chinese mainland)
8. Traffic in alley
9. Various of currency exchange outlets
10. Various of staff member counting banknotes
Sanaa, Yemen - March 30, 2024 (CGTN - No access Chinese mainland)
11. Various of building of Central Bank of Yemen
12. Various of vendors counting damaged banknotes in grocery store
13. SOUNDBITE (Arabic) Mohammed Al Sharabi, local resident (starting with shot 12):
"Since the Central Bank moved from Sanaa to Aden in 2016, we have been suffering greatly. Firstly, there's the halt in government salaries, and secondly, the worn-out currency is not accepted by shop owners, bus owners, or even clothing sellers."
14. SOUNDBITE (Arabic) Moatasem Abdul Salam, local resident:
"Regarding transfers, when our families and relatives in Aden want to send money to Sanaa, the transfer commission rate is as much as 150 percent of the transferred amount. This creates significant hardship."
15. Various of vendors counting, organizing damaged banknotes
16. Traffic
Yemen - Recent (CCTV - No access Chinese mainland)
17. Various of city view, buildings, traffic
The Houthi-controlled Central Bank of Yemen, headquartered in the capital of Sanaa, unveiled its plan to circulate a new 100-riyal coin starting Sunday, raising concerns of deepened economic fracturing.
The country in the south of the Arabian Peninsula has been plagued by a decade-long civil war that has split its society in two. The divide extends to the financial sector, with two central banks operating in the country -- one run by the Houthis and the other by the internationally recognized government.
In a move seen as an attempt to bolster Houthi financial legitimacy and combat the rejection of outdated banknotes, Hashim Ismail, governor of the Central Bank of Yemen in Sanaa, announced on Saturday the issuance of the new coin to substitute bills of the same denomination that have been rendered damaged and unusable.
"Today, we announce the release of a new coin with a value of 100 Yemeni riyals, which will start circulating as of Sunday, March 31," said Ismail, speaking at a press conference.
However, the government-controlled Central Bank of Yemen, based in the country's temporary capital of Aden, swiftly rebuffed the Houthi plans in a strongly-worded statement. It warned all parties against utilizing "any currency issued by the bank's Sanaa branch seized by the Houthi militia."
The statement described the Houthi coin launch as "a dangerous and unlawful escalatory act" that fails to consider citizen interests. It denounced the new currency as "counterfeit" since it was issued "by an illegal entity."
On Tuesday, the government's central bank gave all banks operating in the country a 60-day deadline to move their headquarters from the Houthi-controlled capital Sanaa to the country's southern port city of Aden.
In a decision announced on the bank's website, Bank Governor Ahmed Ghalib warned that any banks defying the order will face potential legal action under Yemen's anti-money laundering and counter-terrorism financing laws, potentially risking the freezing of their assets.
In 2016, two years after the outbreak of the conflict, the government's central bank moved from the capital of Sanaa to the city of Aden. According to experts in the country, the move has created swaths of complications for Yemen's economy.
"The main impact of relocating the central bank to Aden is the creation of a cash split between Sanaa and the southern and eastern provinces, leading to a rise in currency exchange rates," said Rashid Al Haddad, an economic analyst.
The financial rift has destabilized exchange rates in a country where two separate monetary authorities issue different versions of the national currency.
The Houthis have blamed the Aden-based central bank for driving up inflation by printing new money. Notes issued by the bank are banned in Houthi-controlled regions.
War-time operational issues have prevented the Sanaa central bank from printing new money, further fueling a liquidity crisis.
Large quantities of outdated damaged paper notes held by the bank are being rejected as payment, much to the dismay of consumers and traders.
"Since the Central Bank moved from Sanaa to Aden in 2016, we have been suffering greatly. Firstly, there's the halt in government salaries, and secondly, the worn-out currency is not accepted by shop owners, bus owners, or even clothing sellers," said Mohammed Al Sharabi, a Sanaa resident.
"Regarding transfers, when our families and relatives in Aden want to send money to Sanaa, the transfer commission rate is as much as 150 percent of the transferred amount. This creates significant hardship," said Moatasem Abdul Salam, another resident.
There are reports the central bank in Sanaa also aims to replace other damaged denominations of paper currency with new ones of the same value.
Yemen has been embroiled in a protracted armed conflict since late 2014, when the Iran-backed Houthi rebels seized control of the capital Sanaa, compelling the internationally recognized government to relocate its operations to the southern port city of Aden as a provisional capital.
As the conflict enters its tenth year, Yemen finds itself in the throes of a calamitous humanitarian crisis. According to United Nations data, over half of the country's population is in desperate need of assistance, with an estimated 17.8 million people, 50 percent of them children, requiring health aid.
ID : 8370648
Published : 2024-04-03 13:56
Last Modified : 2024-04-03 20:37:09
Source : China Central Television (CCTV),China Global Television Network (CGTN)
Restrictions : No access Chinese mainland
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