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Does the Houthis stigmatize terrorism affect the financial sector in Yemen? | economy

manhattantribune.com by manhattantribune.com
4 February 2025
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Does the Houthis stigmatize terrorism affect the financial sector in Yemen? | economy
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The decision of the American administration – to include the Houthis within terrorist organizations – has sparked fears of negative repercussions on the financial and humanitarian sector in Yemen, which faces one of the worst economic crises in the world.

On January 22, US President Donald Trump announced the inclusion of the Houthi group on the list of “foreign terrorist organizations”, saying that he would direct the US Agency for International Development to end its relationship with the entities that made payments to this group.

The White House said – in a statement – the merits of this decision, due to the fact that the Houthi activities “threaten the security of American civilians and employees in the Middle East, and threaten our closest regional partners and world trade stability.”

In response, the Houthi government considered in a statement that “the classification will not increase the Yemeni people and its free political and in the forefront, Ansar Allah, except for steadfastness and steadfastness on the right and defense.”

The Houthi statement warned that “this new old decision does not serve stability in the region and the United Nations -sponsored peace efforts to achieve a fair and honorable peace for the Yemeni people.”

In the context, the head of the Yemeni Presidential Command Council, Rashad Al -Alimi, welcomed the American decision, and considered this a “entry point for peace and stability” in the country and the region.

Al -Alimi discussed with Ahmed Ghaleb, Governor of the Central Central in Aden, “ensuring the flow of relief aid throughout Yemen, and limiting any effects of the American decision on the financial sector in the country,” according to a news published by the official news agency (Saba).

Husing of the United Nations activity

Two days after the American decision, tension between the Houthis and the United Nations has escalated, as the latter announced – in a statement – the suspension of all its official moves within and to the areas under the control of Houthi in the north of the country.

The United Nations announced the suspension of all its official moves within and to the areas under the control of Houthi in northern Yemen (French)

This decision came after the Houthis accused of “detention of more UN employees working in the areas under their control,” according to the statement.

The relationship between the two sides was strained months ago, after the Houthis were arrested in June 2024 Yemeni UN employees.

How does the Houthi position look like?

In a special statement to Al -Jazeera Net, the prominent Houthi leader Hamid Asim commented on the effects of the American decision, saying that “the people of Yemen in general are those who are affected by the US sanctions, not the leaders.”

He added, “98% of the leaders of Sanaa do not have balances in banks, because the leadership came on empty banks and a siege imposed on Yemen, and not from the leaders that plunder and steal Yemen’s money.”

“They know that Sana’a runs state affairs in its areas of control with the minimum capabilities,” said Asim – who previously participated in the Houthi team with negotiations – addressing the American administration.

Regarding the impact of the classification on the flow of financial transfers to Yemen, Asim explained that “the financial transfers for individuals and Yemeni families, and any penalties that are affected by citizens.”

The Houthi leader attributed the reasons for the American decision to “Yemen’s position on the American -British Zionist aggression against our people in Palestine,” in reference to the attacks of his group, which it carried out in the Red Sea and Israel, saying that it is support for Gaza.

“It is an attempt by America to break the will of the Yemenis, and this is difficult.”

On the impact of the decision on humanitarian and development projects, the Houthi official said that “the financial aid provided to Sana’a is very scarce, and we seek to work in order to rely on our capabilities, even if they are very limited.”

Regarding the group’s response to the American classification, Asim stated, “These sanctions may lead our leadership to use its means of pressure on the countries of aggression, especially the aggressive Arab countries, as well as the Americans, and many means, the most important of which is the power that Yemen possesses.”

The General Union of Yemeni Trade Unions warned that the American classification has serious repercussions on the (European) humanitarian situation

Dangerous repercussions

Hours after Trump’s decision, Oxfam International warned – in a statement – that “re -classification of the Houthis is a terrorist organization that is another strike for Yemenis who fell into the trap of the 10 -year deadly conflict.”

“The banks prepared to reduce their activities, and humanitarian organizations began planning a great escalation with less resources and more restrictions,” the statement added.

And last Thursday, the General Union of Yemeni Trade Unions (non -governmental headquarters in Sana’a) warned that the American classification of the Houthis “will have serious repercussions on the humanitarian situation and peace trends in the region and the world.”

In the context, the Yemeni young man Nasser complained of his recent suspension from working in a civil society organization in Sana’a after the Houthi classification decision is a terrorist organization.

Nasser was working as an employee of a distance in the field of entry and editing data in the organization that I felt with his colleagues residing in Sanaa to dispense with their services until further notice.

Nasser told Al -Jazeera Net – in addition to not mentioning his full identity – that the organization did not tell them the justifications of the decision, but he attributed this to its concerns about the consequences of financial transfers to Sana’a in light of this critical circumstance after the classification of Houthi is a terrorist organization.

The citizen explained that he relied on a guide, “which is that the employees of the organization residing in the areas of the Yemeni government’s control have not been dispensed with,” adding, “Our actions suddenly stopped and this is sad, but other opportunities may come, so we hope for God is great.”

“For 10 years, the civilians have always paid the price of political conflicts that have no camel in it or camel,” Nasser continued.

Significant effects

Most Yemeni banks are located in the Houthi control areas that also contain the main headquarters of international and international organizations, which may affect financial and humanitarian activities as a result of the American decision.

Speaking to Al -Jazeera Net, the banking expert, Abdel Salam Al -Shuja, believes that “the classification of the Houthi group is a terrorist organization with great influences on all financial and humanitarian levels.”

He added, “The classification will affect the financial track, and there will be difficulty in the financial translations and delay, the high cost of deportation for banks, and the lack of power to receive external transfers.”

The banking expert pointed out that “development projects and humanitarian aid by international and local organizations will be greatly affected and may stop as a result of these developments.”

The brave warned that the population in the Houthi control areas in general suffers from extreme poverty, warning at the same time that this classification will have negative repercussions on the state of citizens in the future.

To deal with the current situation, the Yemeni expert recommends the need to facilitate the work of international and local organizations in Sana’a, and to open major offices in Aden, considering that taking this may reduce the exacerbation of the humanitarian and economic situation.

He pointed out that the reception of the Central Bank in Aden for international financing ensures that they are not interrupted, and will limit any effects on the development projects undertaken by the United Nations in the northern regions of Yemen.

Observers considered the American decision to impose collective punishment on the Yemeni (European) people

Collective punishment

For his part, economic researcher Rashid Al -Haddad believes that “the recent American classification decision imposes restrictions on the movement and activities of international organizations and humanitarian agencies, and comes within the framework of economic pressures that Washington exerts on the government of Sanaa.”

Al -Haddad, residing in Sana’a – for Al -Jazeera Net – added that this decision is a “imposing collective punishment on the entire Yemeni people” and that its repercussions on the economic sector and the commercial movement “will be negative.”

He explained that “the indicators indicate that any economic escalation taken from any party in implementation of the American classification decision will be met with a parallel escalation, especially since the Houthi movement has emerged from participating in the battle of the chain of transmission stronger militarily and has great military capabilities as well as urbanization for another round of conflict.”

He stated that “the Houthi movement maintains strength factors that you may use in the event of an tightening of the siege on Sana’a, such as the tightening of the screws for international trade and the cessation of energy supplies in the Red Sea and the Bab al -Mandab strait, which will ignite prices Oil In global markets, Trump’s plans will fail to reduce inflation in the American markets and his golden age may end.

Expatriates damage

Observers indicate the possibility of Yemeni expatriates working abroad, in terms of the difficulty of financial transfer to their families as a result of controlling the funds flowing into the Houthi control areas.

In the context, journalist Hamdan Al -Bakari says, “The decision to classify the Houthis will affect the families of expatriates who mainly depend on financial transfers from their children abroad.”

He added to Al -Jazeera Net that “this matter may cause a negative grinder for the population in those areas, and for their expatriate families abroad by exchange companies and financial transfers.”

Al -Bakari explains that the decision to classify the Houthis will leave a great difficulty in financial transfers, and in raising the cost of the transmission “if other local banks are added to the ban list by the United States.”

He considered that the situation of the population in the Houthi control areas may be greatly affected, and poverty may expand with the intention of closing the organizations of their offices and the scarcity of business.

He cautioned that the areas under the control of the Houthis suffer from economic stagnation and scarcity of foreign currencies, which may cause the American decision a greater crisis in the abundance of foreign exchange, and the complexity of the financial transfers, which constitutes more suffering of citizens.

Tags: affecteconomyFinancialHouthissectorstigmatizeterrorismYemen
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