The Western Union Money Transfer Company announced the suspension of money transfer services to Yemen, in light of the issuance of a decision by the US Treasury Department regarding financial transfers, and with the US administration’s decision to classify the Houthis as a “global terrorist organization in particular” into effect.

Other international money transfer companies, such as MoneyGram and Ray, are expected to follow similar procedures on transferring money to Yemen. These restrictions will certainly negatively affect the already exhausted Yemeni economy, and will harm beneficiaries who depend on financial transfers inside and outside Yemen.

Expatriate remittances are essential to the national economy and provide the necessary foreign currency. Because of these restrictions, the price of the dollar is expected to rise to higher levels, making the economic situation more complex.

In addition, the designation of the Houthis as a terrorist organization may cause exchange rates to rise in areas under government control, and although Saudi Arabia has deposited the second batch of financial support for the Yemeni government, this measure may lead to a deterioration of the economic situation in the country.

Expats, especially in Europe, America and Africa, will be greatly affected by these restrictions, as they will be forced to look for alternative ways to transfer money, which may expose them to the risks of extortion and fraud. Intermediaries who provide transfer services through a third party may be able to exploit the crisis at the expense of beneficiaries inside Yemen.

For its part, the US government announced that it will work to avoid negative impacts on the Yemeni people as a result of classifying the Houthis as a terrorist organization.