Yemen central bank nearly doubles interest rate to halt riyal plunge

Yemen’s currency has halved in value against the US dollar since the start of a civil war in 2014. (File/AFP)
Updated 19 September 2018
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Yemen central bank nearly doubles interest rate to halt riyal plunge

  • Yemen’s currency has halved in value against the US dollar since the start of a civil war in 2014
  • The United Nations says more than 8 millions Yemenis are at risk of famine

ADEN: Yemen’s central bank, based in territory controlled by its exiled government, nearly doubled its interest rate on Wednesday in an effort to stabilise the riyal after violent demonstrations against a plunging currency.

State news agency Saba said the rate on certificates of deposit had been hiked to 27 percent. An official at the bank said the previous rate had been 15 percent for the past four years.

Yemen’s currency has halved in value against the US dollar since the start of a civil war in 2014, when the capital was captured by the Iran-aligned Houthi movement and the government fled.

Most Yemenis now live in Houthi-controlled territory, while the government of exiled President Abd-Rabbu Mansour al-Hadi controls the south, backed by a Saudi-led coalition of Arab troops.

Saba said the central bank also raised the interest rate on government bonds to 17 percent. It did not say what the previous rate was.

The effect of the rate decision is difficult to forecast in the Arabian peninsula’s poorest country, where inflation has hit record highs and many traders prefer a safer Saudi riyal.

The United Nations says more than 8 millions Yemenis are at risk of famine, requiring the world’s most urgent relief effort.

The plunge in the currency and soaring inflation sparked violent demonstrations in the government-held south earlier this month.

The banking system still functions, delivering some government salaries, and is used for transfers of funds from Yemenis living abroad.

Wednesday’s statement said the bank will tighten foreign exchange rules and Yemenis will not be allowed to take more than 10,000 US dollars out of the country without approval from the central bank.

“The central bank also reiterates its commitment to help commercial banks by transferring hard currencies to their foreign accounts,” the statement added.

Last year, the government floated the riyal, instructing banks to use the market rate for the riyal instead of a fixed rate.

On Wednesday, the currency was changing hands at around 610 riyals to the dollar on the black market in the southern port of Aden, base of Hadi’s exiled government, while the official rate was announced at just 490 riyals, according to traders. Black market rates are similar in Houthi-held territory.

Hadi’s government moved the central bank from the capital Sanaa to Aden in 2016, a move that put the bank in the crossfire of Yemen’s war. 


Joy in Palestinian refugee camp in Beirut as European trio advances cause

Updated 22 May 2024
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Joy in Palestinian refugee camp in Beirut as European trio advances cause

  • “We hope that the whole world will recognize Palestine, and we are happy with this decision... It is a beautiful feeling,” said Alaa Ghozlan
  • Israel was enraged by the move announced Wednesday by Ireland, Norway and Spain, arguing that it amounts to “rewarding terrorism”

SHATILA, Lebanon: In Beirut’s impoverished Palestinian refugee camp of Shatila — a maze of alleyways where posters honor fallen martyrs — residents expressed joy Wednesday after three European countries said they would recognize a Palestinian state.
“We hope that the whole world will recognize Palestine, and we are happy with this decision... It is a beautiful feeling,” said Alaa Ghozlan, 26, whose family is originally from Haifa, now in northern Israel.
“We now have hope to return to our country — a country I was not born in and was deprived of but which lives inside me despite everything,” he told AFP on a winding street in the camp.
Israel was enraged by the move announced Wednesday by Ireland, Norway and Spain, arguing that it amounts to “rewarding terrorism” after Palestinian militant group Hamas launched its unprecedented October 7 attack on Israel that sparked the bloodiest ever Gaza war.
Seven other European countries including Sweden have already recognized Palestinian statehood.
Lebanon hosts an estimated 250,000 Palestinian refugees, many living in poverty in the country’s 12 official camps, according to the United Nations agency for Palestinian refugees (UNRWA).
Most are descendants of survivors of what Palestinians call the Nakba — the “catastrophe” — when about 760,000 Palestinians fled or were forced from their homes by the 1948 war over Israel’s creation.
Shatila resident Samah Omari, 50, a housewife, said she was “very happy” with the decision, and expressed hope that it would eventually impact her and her family.
“People are dying in Palestine. We demand our rights and defend our land so that our state can be recognized by all countries,” she said.
“We hope to return to our country and not be refugees anymore,” she added.
The camp’s tumbledown walls are adorned with Palestinian flags and posters in support of militant groups including Hamas and their leaders.
Men on motorbikes and tuk-tuks squeeze past women shopping and schoolchildren making their way through the streets.
Above, matted electricity wires and plastic water tubes are bound precariously with rope or cables, some weighed down by clothes that have fallen from washing lines.
The United States and most Western European nations have said they are willing to one day recognize Palestinian statehood, but not before agreement is reached on thorny issues like final borders and the status of Jerusalem.
But Israel’s war against Hamas militants in Gaza, with its mounting death toll, has given the issue new impetus.
Suliman Abdel Hadi, 70, an official at the camp, said the timing of the decision was “important after October 7 because of the massacres carried out by the brutal Zionist enemy.”
“We see a bright future for the Palestinian cause,” said Abdel Hadi, whose family is from the Acre area, now in northern Israel.
“What happened today is the result of sacrifices made by the Palestinian people over 76 years of persecution, killing and destruction,” he added.
Hamas’s October 7 attack resulted in the deaths of more than 1,170 people, mostly civilians, according to an AFP tally of Israeli official figures.
Militants also took 252 hostages, 124 of whom remain in Gaza, including 37 the army says are dead.
Israel’s retaliatory offensive has killed at least 35,709 people in Gaza, most of them civilians, according to the Hamas-run territory’s health ministry.
On another street in Shatila, a man who gave his name as Abu Majdi, and whose father originally hailed from Haifa, called the decision “great” and said it was “baptised in the blood of martyrs.”
“This recognition will change the future of coming generations and the future of the Palestinian cause,” said the 63-year-old man, a Palestine pendant hanging from his neck.


Israel allows return to three evacuated West Bank settlements

Updated 22 May 2024
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Israel allows return to three evacuated West Bank settlements

  • The military announced the move on the day three European states said they would formally recognize the State of Palestine
  • A fourth settlement, Homesh, was cleared for entry last year

JERUSALEM: The Israeli military has approved permission for Israelis to return to three former West Bank settlements they had been banned from entering since an evacuation ordered in 2005, the defense ministry said on Wednesday.
The three settlements, Sa-nur, Ganim and Kadim, are located near the Palestinian cities of Jenin and Nablus, both of which are strongholds of armed militant groups in the northern West Bank.
A fourth settlement, Homesh, was cleared for entry last year after parliament passed an amendment to the so-called “disengagement law” of 2005. Permission from the military, which has overall control of the West Bank, was required for any return to the other three former settlements.
The military announced the move on the day three European states said they would formally recognize the State of Palestine, and as Israel’s military offensive against the Palestinian militant group Hamas continued in the Gaza Strip.
It took the decision despite international pressure on Israel to curb settlement expansion in the West Bank, which Palestinians want as the core of a future independent state alongside Gaza.
“The Jewish hold on Judea and Samaria guarantees security, the application of the law to cancel disengagement will lead to the development of settlement and provide security to residents of the area,” Defense Minister Yoav Gallant said in a statement, using the Biblical names for the West Bank that are often used in Israel.
There was no immediate comment from the Palestinian Authority.
Last year’s amendment to the disengagement law was seen as opening the way to re-establishing former West Bank settlements evacuated in 2005 under a plan overseen by former Prime Minister Ariel Sharon.
Under the plan, which was opposed by the settler movement at the time, all 21 Israeli settlements in Gaza were ordered to be evacuated. Most settlements in the West Bank were unaffected apart from the four that will now be accessible again.
More than 500,000 Jewish settlers are now estimated to be living in the West Bank, part of territory captured by Israel in the 1967 Middle East war, with a further 200,000 living in East Jerusalem.
For Palestinians and most of the international community, the settlements are considered illegal. Israel disputes this, citing the Jewish people’s historical, biblical and political links to the area as well as security considerations.
Despite international opposition, settlements have continued to expand strongly under successive Israeli governments.


Death of Iran’s president has delayed talks with UN nuclear watchdog, Grossi says

Updated 22 May 2024
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Death of Iran’s president has delayed talks with UN nuclear watchdog, Grossi says

  • The International Atomic Energy Agency faces a range of challenges in Iran
  • Nuclear watchdog has been trying to expand its oversight of Iran’s atomic activities

HELSINKI: The deaths of Iran’s president and foreign minister in a helicopter crash have caused a pause in the UN nuclear watchdog’s talks with Tehran over improving cooperation with the agency, the watchdog’s chief Rafael Grossi told Reuters on Wednesday.
“They are in a mourning period which I need to respect,” International Atomic Energy Agency (IAEA) chief Grossi said in Helsinki, where he spoke at a nuclear conference.
“But once this is over, we are going to be engaging again,” he said, describing it as a “temporary interruption that I hope will be over in a matter of days.”
Grossi said the IAEA was planning to continue technical discussions with Iran but they had not yet taken place due to last weekend’s helicopter crash that killed President Ebrahim Raisi and Foreign Minister Hossein Amirabdollahian.
The IAEA faces a range of challenges in Iran, from Tehran’s recent barring of many of the most experienced uranium-enrichment experts on its inspection team to Iran’s continued failure to explain uranium traces found at undeclared sites despite a years-long IAEA investigation.
The IAEA has been trying to expand its oversight of Iran’s atomic activities while the country’s uranium-enrichment program continues to advance. Iran is enriching uranium to up to 60 percent purity, close to the 90 percent of weapons-grade, which no other country has done without developing nuclear weapons.
Tehran says its aims are entirely peaceful.
Iran currently has about 140 kg of uranium enriched to up to 60 percent, Grossi said. According to an IAEA definition, that is theoretically enough, if enriched further, for three nuclear bombs. The IAEA’s last quarterly report in February said Iran had 121.5 kg, enough for two bombs.
Iran is still producing about nine kg a month of uranium enriched to up to 60 percent, Grossi said. It is also enriching to lower levels at which it has enough material for potentially more bombs.
Grossi, who two weeks ago said he wanted to start to see concrete results on improved cooperation from Iran soon, repeated that hope but said a more wide-ranging deal would require “a bit more time.”
For now, his team had not made progress on the main issues, he said.
“It is high time there is some concrete issuance and if not resolution, some clarification of what is this,” Grossi said of the uranium traces at undeclared sites.
“And I would say, confidence in many parts of the world (in Iran on the nuclear issue) is growing thinner.


Bahrain’s king to visit Russia and China

Updated 22 May 2024
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Bahrain’s king to visit Russia and China

DUBAI: Bahrain’s King Hamad bin Isa Al-Khalifa is visiting the Russian capital, Moscow, on Wednesday at the invitation of President Vladimir Putin, state news agency BNA reported on Wednesday. 

The two leaders will discuss cooperation between their respective countries, regional and international developments, and the results of the 33rd Arab Summit, hosted last week in Bahrain.

The king will likewise visit China at the invitation of President Xi Jinping to participate in the opening session of the Arab-Chinese Cooperation Forum.

The two will discuss cooperation between Bahrain and China, as well as the outcome of the 33rd Arab Summit.


UAE president to visit South Korea

Updated 5 sec ago
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UAE president to visit South Korea

  • The two leaders will discuss bilateral ties and explore opportunities for greater collaboration

ABU DHABI: UAE President Mohamed bin Zayed Al-Nahyan will make a two-day state visit to South Korea on May 28 at the invitation of President Yoon Suk Yeol, state news agency WAM reported on Wednesday.

The two leaders will discuss bilateral ties and explore opportunities for greater collaboration across various sectors including trade, investment, energy and technology.

They will also address regional and international developments of common interest.

“The meeting comes within the framework of strategic partnership between the UAE and South Korea in line with their vision to achieve a better and more prosperous future for the countries,” the WAM statement said.