A recent report confirmed that the Houthis are actively working to destroy the banking sector and support exchange facilities by imposing contradictory regulations on banks, raiding their headquarters, conducting raids, and arresting and kidnapping banking officials, in exchange for full and absolute support for exchange facilities.
The report issued by the "Regain Yemen" Initiative revealed that the Houthis have opened special accounts with exchange companies (instead of banks) to supply sales of oil derivatives and household gas. It stated that what was supplied was a cash amount that exceeded what was in the banks' vaults, which affected the flow of goods and services and exacerbated the humanitarian crisis.
Unreasonable exchange rates
Regarding exchange rates, the report stated that the imposition by the Houthis of the exchange rate for the Yemeni rial against foreign currencies (at the current rate) is illogical and does not correspond to the economic situation.
The report considered that the Houthis' imposition of this price is a trick to loot the remittances of expatriates and the funds of humanitarian organizations. As the sole buyer of these funds through the so-called payment committee, it ensures that companies affiliated with their leaders obtain foreign currency at a low price that does not correspond to the continuous rise in commodity prices in their controlled-areas.
The report revealed that the Houthis used the banking sector to launder and loot assets, and to legitimize it by opening fake accounts under non-existent company names in order to bypass international agreements on combating money laundering. They also exploited relationships with some banks to involve them in illicit deals to import weapons and finance transactions to acquire public, private, and mixed sector companies.
