The Governor of the Central Bank of Yemen, Ahmed Ahmed Ghaleb Al-Maqbi, issued a decision yesterday, Sunday, regulating the practice of foreign transfer activity through international remittance companies (such as Western Union and MoneyGram).

The decision stipulated that foreign remittances be carried out exclusively through qualified banks or exchange companies approved by the Central Bank of Yemen in Aden. 

The decision obligated all qualified banks and exchange companies to provide the service through their main centers authorized in Aden and their affiliated branches, while granting sub-agents with annual contracts to local exchange companies or facilities. 

The decision included an obligation for exchange companies to deliver the amounts of foreign transfers in the same currency they were received in, and it is not permissible to spend them in any currency unless the beneficiary client desires.

According to informed sources, this decision will help the Central Bank strengthen its monetary control, and will oblige all money changers, even in Houthi areas, not to engage in any activity related to foreign remittances except after obtaining a permit from the Central Bank in Aden.

This decision also undermines the current Houthi policies, which are trying to receive all remittances in their areas in Saudi riyals.

This decision comes in light of the continuing economic battle between the Houthi de facto authority, which minted an illegal metal currency in areas under its control, and the Central Bank of Yemen, which ordered the transfer of all private banking centers to Aden.

The Central Bank of Yemen has set a time limit for all private banks to begin the procedures for transferring them to the capital, Aden, and only one week remains of the deadline.