A report issued by the Sanaa Center for Studies, on Thursday, said that the Saudi ambassador to Yemen, Mohammed Al Jaber, did his utmost to force the Yemeni government and its Central Bank of Yemen to retract the decisions that aimed to isolate the Houthi group from the international banking system.< /p>

According to the report of the Economic Unit of the Sana'a Center and researcher Ned Wali, the decision of the Central Bank of Yemen to isolate banks and restrict financial transfers in Houthi-controlled areas constituted a real threat that could paralyze the economy and loosen the group's grip and rule.

He said that the measures were also the last pressure card for the government in its efforts to negotiate a breakthrough in the economic war and resume oil exports, or influence the already imbalanced balance of power before entering into the expected peace talks.

However, Saudi Arabia exerted tremendous pressure, and the report quoted sources, who preferred to remain anonymous, saying that Al Jaber did not succeed in changing the position of the Governor of the Central Bank of Yemen in Aden, Ahmed Ghaleb, who remained steadfast despite threats and temptations, so he resorted to summoning members of the Council. The presidential leadership went to a meeting and threatened to completely cut off funding to the government unless the bank’s measures were reversed.

The Saudi ambassador also hinted that the government will face its fate alone if the Houthis resort to military retaliation.

According to the report, Al Jaber told the Presidential Command Council that the bank’s decision represents a declaration of war and that not everyone is ready for that.

Since the escalation of the economic war, Riyadh seemed content to remain on the sidelines, but it moved quickly once its own interests were at stake, after Houthi leader Abdul-Malik al-Houthi threatened to resume attacks on Saudi Arabia if Riyadh did not intervene in the crisis, according to a Sana’a Center report.< /p>

The Saudi ambassador to Yemen, Mohammed Al Jaber, led peace talks between the Kingdom and the Houthi group, and Saudi Arabia made a series of concessions to appease the group under his supervision.

According to the report, the crisis of the Central Bank of Yemen reveals almost complete Saudi dominance over Yemeni politics, while Riyadh deliberately undermined the Presidential Leadership Council and kept it weak and unable to exert tangible pressure on the Houthi group.

He said, “When the government waved the last pressure card it had - that is, international recognition of its authority over the financial system - Saudi Arabia set out to undermine this as well by threatening to cut off its support for the government, which would have inevitably been followed by a state of collapse and chaos.”

He pointed out that the government’s submission to Saudi hegemony is a destructive step and a tragic surrender.

According to the report, retracting the decision undermined the independence of the Central Bank of Yemen as an internationally recognized monetary authority. Its image as a credible financial institution may be undermined, while its regulatory authority may diminish, which may encourage war profiteers and black market lords.

He said, "Externally, the step may undermine - and permanently - international recognition as the central bank for Yemen."