How Yemen plans to dry up Houthis' funding
Yemen is making major changes in its fiscal operations, hoping to get back revenue sources it says are being hijacked by Houthi rebels.
ADEN, Yemen — After years of civil war, the Yemeni government has declared an economic war on Houthi rebels.
Yemen's internationally recognized government, headed by Prime Minister Ahmed Obeid bin Daghr, is shifting its treasury temporarily to the Central Bank branch in Aden, hoping to stem the flow of money he believes is funding the rebel's war efforts. The government's administration moved to Aden when the Houthis took control of Yemen's capital, Sanaa, and the Central Bank there in September 2014.
President Abed Rabbo Mansour Hadi has said the decision doesn't officially mean "a transfer of monetary authority from Sanaa to Aden," but rather means the Central Bank's branch in Aden will be the temporary treasury.
The move is designed to absorb financial revenues from various economic sectors, especially petroleum, and keep the money away from the Houthis and their allies at the Central Bank, who have allegedly tampered with the funds.
