"Zammam" accuses Britain of obstructing the Yemeni central and says that Griffiths did not care about economic situation

"Zammam" accuses Britain of obstructing the Yemeni central and says that Griffiths did not care about economic situation

The Governor of central Bank of Yemen accused Britain of obstructing the bank's work, saying that its central bank had surprised his Yemeni counterpart with political requirements in return for reopening the frozen Yemen account, but preferred not to mention those conditions.

He also criticized the UN envoy to Yemen, Martin Griffith, who revealed his initial lack of interest in the economic issue because his efforts are concentrated in politics, and said his team handed the "Yemeni central" a paper that contradicts the bank's independence and laws.

In a dialogue with the Middle East via e-mail, the governor, who began his work in mid-February (February) 2018, said that the recent Saudi grant of $200 million reached the central bank accounts within 12 hours of the issuance of the directives of the Custodian of the Two Holy Mosques, King Salman bin Abdul-Aziz.

He called on the international humanitarian organizations operating in Yemen to take care to buy the materials to be distributed from the local markets, so as to provide significant employment opportunities and encourage the private sector to continue, as more than six million people in Yemen through private sector activities, and invited organizations To the importance of reviewing the procedures of the organizations with regard to pumping foreign currencies, either through the central bank or under its supervision, to protect the purchasing value of the Yemeni riyal.

The text of the dialogue is as follows....

> How do you evaluate the banking system in its current situation and what challenges do you face?

-The Yemeni banking sector is not a large sector. 17 banks, including Islamic and commercial banks and Arab and non-Arab Bank branches. Evaluation is appropriate and amounts to good under the conditions that Yemen has experienced, and the sector is resilient to people and facilitates trade.

The challenges are many and significant, foremost among which is the maintenance of business continuity under extremely complex conditions and in the circumstances of war and the difficulty of movement between governorates while the banks need ease of movement, in addition to the existence of different authorities, although we try to mitigate that duplication by activating the bank procedures Properly centralized.

Correspondent Banks are also the most important challenges, but we have come a long way to bring life back to the banking sector by restoring the money cycle to the banks as well as working with Arab central banks to restore confidence in the Yemeni banking sector, and we have received a big response from the Arab Monetary Agency Saudi Arabia, the Central Bank of Egypt and the rest of the Arab banks, as well as the foreign banks, because the central bank of Yemen takes account of that effort and we do not leave each bank working with individual effort.

> What has changed since you took office as governor of the Central bank and so far?

-We try to restore confidence in the banking sector in general and the central bank in particular in the eyes of Yemeni society as well as in the thinking and decisions of the private sector.

We made the money cycle in a gradual way to the banks and we started to restore the confidence of society in the banking sector through a number of decisions including pumping sufficient amounts of money to the banks to meet the needs of the customers, and the central bank stops the disbursement of cash directly to the customers and takes place through banks, and refinancing of trade Foreign exchange through the central bank to provide foreign exchange for commodities through the Saudi depository and through banks only, prompting traders and importers of those materials to return to the banks, in addition to the central bank to help the banks to take out the amounts of foreign currency to feed bank balances, and help Yemeni banks to re-establish relations with the Correspondents ' Network we are at the beginning of this long task and the great challenge that requires a great deal of effort from us and the banks in terms of commitment and response to international requirements by all banks.

The most important is to restore the confidence of the local, regional and international community in the Central Bank of Yemen, one bank of management, one economy, one currency, one people.

> What are the main challenges of the central bank and what steps are being taken to improve it?

-When you talk about a banking sector in a country that has undergone a deep economic crisis over the past 10 years, and instead of easing the crisis, the country has entered a state of war; the challenges are large and numerous, the biggest challenge is to withstand and sustain the business and how to keep the banking cycle even lower. Thus, the central bank faces those challenges with the banking sector as it is responsible and secure for all banks, and this has been further divided between Sanaa and Aden and the central bank has been relocated to Aden, But thanks God, with the support of our brothers, especially Saudi Arabia and the United Arab Emirates. The Arab Republic of Egypt and the Hashemite Kingdom of Jordan managed to overcome all the problems and challenges that the bank faced in the first year of transferring bank operations, and the greatest challenge was to provide external resources to the bank, without external reserves, a central bank cannot play any role whatsoever.

The Saudi depository was the most important catalyst and supporter for the bank to perform all its functions. Recently, the central bank received a generous grant from King Salman bin Abdul-Aziz to supplement the resources of the Central Bank of Yemen in the amount of $200 million, which reached the bank's accounts within 12 hours from the time of the issuance of the generous directives.

The challenge also confronts the central bank with the need to return the cash cycle to the banking sector, which is the normal position of the monetary course.

> What measures have you taken to benefit from the recent Saudi grant of $200 million?

-The Saudi grant, estimated at $200 million to strengthen the resources of the central bank, will be allocated for the provision of materials necessary for citizens, including medicines and certain materials.

Part of it will be earmarked for the repayment of outstanding loans that will facilitate Yemen's many assistance, for example, there are small amounts required for some international organizations such as repayment of previous loans, and after payment, up to $50 million will be paid in projects as assistance.

> How do you describe the central bank's relationship with international organizations and the United Nations, and what are you asking them for?

-For international organizations, there are financial and economic matters, such as the International Monetary Fund (IMF), which follows up on States with regard to financial and economic actions, our relationship today is a distinct situation after being chilled out and reaching the point of collision. The International Monetary Fund (IMF) is overseeing the preparation of a project for the institutional, human and technical reconstruction of the Central bank in all regions of Yemen with funding from several countries and specialized organizations.

Currently, the central bank and other ministries in the UAE are planning, finance, oil and civil service coordinated by the General Secretariat of the Cabinet for Government institutions in preparation and preparation for the first International Monetary Fund (IMF) mission since mid-2014, which will be held in Amman at the beginning of the month December (December) 2018.

The United Nations specialized agencies working in the fields of relief, health, education, agriculture and so on, as much as we thank and appreciate the excellent work, which mostly saves large numbers of children and women and keeps famine away from Yemen and Yemenis, we ask those organizations two key points so that they maximize of its assistance and that aid should be a catalyst for the economy and not negatively impacting the economy.

First: Ensure the purchase of materials to be distributed from the local markets, including the provision of large jobs and encourage the private sector to continue with the knowledge that more than six million people live through the activities of the private sector.

Second: The importance of reviewing the procedures of the organizations about pumping foreign currencies, either through the central bank or under its supervision, because of the positive effects to protect the purchasing value of the Yemeni riyal, which negatively affects all groups of society when the value deteriorates.

> Have you completed the procedures for opening a frozen state account at the Bank of England?

-This is indeed a very important issue that stems from the fact that Yemen can use its own resources to import food, as well as to use the network of correspondents when food credits are opened.

Unfortunately, the United Kingdom is calling on and keen to help Yemen and warn of famine that prevents the central bank from using its funds. We have a Bank of England account with funds for Yemen, the account was frozen for previous circumstances and after the central bank returned and recognized by all countries, most of the accounts were opened, including the bank account with the Federal Reserve in New York, and after completing all the requirements through offices by (May) 2018, then wait to hold the central bank diagnosis mission by the International Monetary Fund, then we were surprised by a letter dated 3 (October) 2018 that the Bank of England requested political requests unrelated to the banking work and intended only to prevent Yemen from using its funds to buy the food needed by the Yemeni people.

> UN envoy Martin Griffiths the economy was considered a priority for him in the previous period. He said he is seeking to integrate Yemeni central with another in Sanaa, while he is keen not to politicize the economy. What do you think of what he said, and what level of cooperation with Martin Griffiths and his economic team?

- Mr. Martin Griffiths is convinced of the importance of the economy and his role in alleviating the suffering of the people is a positive development, he himself asked to meet with Me (formerly) and said by letter that economic subjects outside the framework of his mission because his mission is related to the political side. What is more important is the reasons for this great transformation.

In the central bank, we do not cooperate with the envoy because it is the responsibility of the leadership and the Ministry of Foreign Affairs, but when the International Monetary Fund stipulated the need to include members of the Working Group in the Central Bank branch in Sana'a as part of the bank team involved in diagnosing the current status of the bank in order to prepare a project In all the governorates of the Republic, the meeting was held on the preparation of a technical meeting between the leadership of the central bank and members of its working team in Sana'a, and all the arrangements including the agenda for a meeting will be under the supervision of the International Monetary Fund and the World Bank, the central bank received a proposed paper from the office of the envoy came out All the arrangements made and even put forward points that are contrary to the law and independence of the central bank while everyone is keen to respect them, and we are ready to continue to cooperate under the law of the Central Bank and the independence of its decision.

> What is the role of the economic Quartet in supporting the activities of the Central Bank of Yemen?

-The economic quartet led by the Kingdom of Saudi Arabia and the membership of the United States, Britain and the UAE are working as essential axis to support the central bank in restoring its pivotal role in the Yemeni economy by overseeing the preparation of the Central Bank Development project, which we expect to offer to the Quartet End of November 2018, and then call for a meeting of donor countries to fund the project on the one hand, and on the other hand to request the strengthening of the central bank's external resources through deposits and grants, and most importantly to assist Yemeni commercial and Islamic banks in returning to the international financial system through the network of correspondents, as well as the elimination of the restrictions imposed on the causes of war at the beginning of 2015


Print Send