A/HRC/42/CRP.1
796. The devaluation of the Yemeni Rial has been exacerbated by the continuous printing
of money by the Government of Yemen.1279 A series of cash injections from Saudi Arabia
helped stabilize the exchange rate, but black market exchange rates still hover well above
the official rate.1280 Exaggerated currency exchange rates on the black market have been
further sustained by the relocation of the Central Bank from Sana’a to Aden by the
Government of Yemen in September 2016. Indeed, its relocation left the Central Bank
considerably weaker nationally, as it became unable to play the role of economic
stabilizer.1281 This also incited Yemenis to rely on informal money transfer systems, 1282
further contributing to the black market and the corruption prevailing in the war
economy.1283 The relocation also undermined the National Bank’s credibility at the
international level.1284
797. As a most tangible consequence, the relocation of the Central Bank by the
Government of Yemen led to the non-payment of salaries of hundreds of thousands of
governmental civil servants, including teachers and medical personnel, working in areas
controlled by the de facto authorities. On 23 September 2016, President Hadi had
acknowledged before the United Nations General Assembly that the relocation of the
Central Bank from Sana’a to Aden might result in a failure to pay the salaries of public
sector employees.1285 In May 2019, the Sana’a Centre reported that hundreds of thousands
of civil servants had not received regular salaries for three years, i.e. since the relocation of
the Central Bank.1286 In May 2019, the Federation of Yemen Chambers of Commerce and
Industry emphasized that the non-payment of salaries to employees has been one of the
most significant factors deepening the economic and humanitarian crisis in Yemen. 1287 On
29 September 2016, the International Crisis Group had already warned that “[e]fforts to
move Yemen’s Central Bank will likely add to risks of insolvency and starvation”. 1288
798. The governmental tax revenue system has collapsed, as the de facto authorities have
reportedly been pursuing aggressive tax collection practices to fund war efforts. 1289 These
additional financial constraints on the Yemeni population deepened the humanitarian crisis,
1279
Economist Intelligence Unit, Country Report Yemen (Feb. 19, 2019) quoted in Jeremy M. Sharp,
Yemen: Civil War and Regional Intervention, Congressional Research Service (Mar. 21, 2019),
https://fas.org/sgp/crs/mideast/R43960.pdf at 13.
1280 See, for example, https://shilfa.com/saudi/exchange-rates-in-yemen-now-the-price-of-the-dollarand-the-saudi-rial-on-wednesday-29-5-2019/
1281 Mansour Rageh, Amal Nasser, and Farea Al-Muslimi, “Yemen Without a Functioning Central
Bank: The Loss of Basic Economic Stabilization and Accelerating Famine”, Sana’a Centre for
Strategic Strategies (Nov. 2, 2016), http://sanaacenter.org/publications/main-publications/55.
1282 Sherine El Taraboulsi-McCarthy and Camilla Cimatti, “Counter-terrorism, de-risking and the
humanitarian response in Yemen: a call for action”, Humanitarian Policy Group (2018) at 10.
1283 While Yemen was one of the lowest scoring countries in Transparency International’s
Corruptions Perception Index (CPI) prior to the current conflict, its score has further dropped since
2014; Yemen is currently ranked 176 out of the 180 countries. Corruption Perceptions Index 2018”,
Transparency International (2018): https://www.transparency.org/cpi2018#results.); see also, for
example, as regards corruption networks: http://sanaacenter.org/publications/the-yemen-review/6732;
http://sanaacenter.org/files/Rethinking_Yemens_Economy_policy_brief_9.pdf.
1284 Sherine El Taraboulsi-McCarthy and Camilla Cimatti, “Counter-terrorism, de-risking and the
humanitarian response in Yemen: a call for action”, Humanitarian Policy Group, 2018.
1285 President Hadi stated, “We might fail to pay the salaries of people working in public service.” 71 st
Session of the General Assembly (Sept. 23, 2016), https://gadebate.un.org/en/71/yemen.
1286 Spencer Osberg and Hannah Patchett, “An Unending Fast: What the Failure of the Amman
Meeting Means for Yemen”, Sana’a Centre for Strategic Strategies (May 20, 2019),
http://sanaacenter.org/publications/analysis/7433.
1287 “Federation of Yemen Chambers of Commerce and Industry: Non-Payment of Salaries Most
Important Reason for Humanitarian Crisis in Yemen”, Almasirah Media Network (May 5, 2019),
https://english.almasirah.net/details.php?es_id=6930&cat_id=1.
1288 International Crisis Group, “Central Bank Crisis Risks Famine in Yemen”, 29 September 2016
(https://www.crisisgroup.org/middle-east-north-africa/gulf-and-arabian-peninsula/yemen/centralbank-crisis-risks-famine-yemen)
1289 Peter Salisbury, “Bickering While Yemen Burns: Poverty, War, and Political Indifference,” The
Arab
Gulf
States
Institute
in
Washington,
June
22,
2017,
at
10.
https://agsiw.org/wpcontent/uploads/2017/06/Salisbury_Yemen_ONLINE.pdf.
191
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