World
Fight for control of Yemen's banks between rebels, government threatens to further wreck economy
SANAA, Yemen (AP) — Yemen’s Houthi rebels and its internationally recognized government are locked in a fight for control of the country’s banks that experts warn is threatening to further wreck an economy already crippled by nearly a decade of war.
The rivalry over the banks is throwing Yemen’s financial system into deeper turmoil. Already, the Houthis who control the north and center of the country and the government running the south use different currency notes with different exchange rates. They also run rival central banks.
The escalating money divide is eroding the value of Yemen’s currency, the riyal, which had driven up prices for clothing and meat before the Islamic holiday of Eid al-Adha started on Sunday.
For weeks, Yemenis in Houthi-controlled areas have been unable to pull their money out of bank savings accounts, reportedly because the Houthi-run central bank, based in the capital, Sanaa, has stopped providing liquidity to commercial and government banks. Protests have broken out in front of some banks, dispersed by security forces.
Yemen has been torn by civil war ever since the Iranian-backed Houthi rebels took over Sanaa and much of Yemen’s north and center in 2015. The Saudi-backed internationally recognized government and its nominal ally the Southern Transitional Council, a group supported by the United Arab Emirates, govern the south and much of the east, centered in the southern port city of Aden.
Yemen was already the Arab world’s poorest country before the war began. Punitive actions by each side against the other’s banks over the past week now threaten to undermine merchants’ ability to import food and basic commodities and to disrupt the transfer of remittances from Yemenis abroad, on which many families depend, said Edem Wosornu, director of operations and advocacy for the U.N. humanitarian coordination office known as OCHA.
“All these factors will likely deepen poverty, worsen food insecurity and malnutrition, and increase reliance on humanitarian assistance,” she told a U.N. Security Council briefing on Thursday. The dispute could escalate to the point that banks in Houthi-run areas are barred completely from international financial transactions, which she said would have “catastrophic ramifications.”
The internationally recognized government moved the central bank to Aden in 2016, and since then began issuing new banknotes to replace worn-out riyals. Houthi authorities, which set up their own central bank in Sanaa, banned the use of the new money in areas under their control.
In March, the Houthi-controlled central bank announced it was rolling out its own new 100-riyal coins. The international community and Yemen’s recognized government denounced the move, saying the Houthis were trying to set up their own financial system and warning it will deepen Yemen’s economic divide.
Adding to the confusion, the bills have different exchange rates — riyals issued in Sanaa go for about 530 to the dollar, while those from Aden are around 1,800 to the dollar.
In response, the Aden-based central bank gave banks 60 days to relocate their headquarters to the southern city and stop operating under Houthi policies, or else risk facing sanctions related to money laundering and anti-terrorism laws.
The central bank was “forced to make these decisions, especially after the Houthi group issued their own currency and took unilateral steps towards complete independence from the internationally recognized Central Bank in Aden,” said Mustafa Nasr, an economic expert and head of the Studies and Economic Media Center SEMC.
No banks met the deadline — either because they needed more time or because they feared Houthi sanctions if they moved, Nasr said.
When the deadline ran out last week, the central bank in Aden banned dealing with six banks headquartered in Sanaa, meaning currency exchange offices, money transfer agencies and banks in the south could no longer work with them.
In retaliation, the Houthi-run central bank in Sanaa banned all dealings with 13 banks headquartered in Aden. That means people in Houthi-controlled areas can’t deposit or withdraw funds through those banks or receive wire transfers made through them.
Even as the fight for control is going on, both sides are facing a cash crunch. The Houthi government has few sources of foreign currency and its new coins aren’t recognized outside its territory.
In January, the United States designated the Houthis as a global terror group in response to the rebels’ attacks on shipping in the Red Sea and Arabian Sea. The Houthis say the attacks are in retaliation for the Israel-Hamas war in the Gaza Strip. Because of the U.S. decision, banks around the world might be concerned and reluctant to continue any financial dealings with banks that have headquarters under Houthi control, said Youssef Saeed, a University of Aden economic professor.
The economy in Aden isn’t significantly better. The government’s revenues have been hit hard ever since Houthi attacks on oil ports in late 2022 forced a halt in oil exports, the main earner of foreign currency.
Since March, depositors in Houthi-run areas have been unable to pull money out of their accounts. The central bank in Sanaa hasn’t announced any formal restrictions, but several economists told The Associated Press that it has informally stopped releasing funds that individual banks have put in its coffers — in part because of a lack of liquidity.
At one bank that saw protests by depositors last month, the International Bank of Yemen, a note hung in the lobby said, “In coordination with the Central Bank, withdrawals from old accounts have been suspended until further notice.”
Um Ahmed, a 65-year-old woman who was among those protesting outside the bank, said that she was trying to withdraw money to help her son buy a motor scooter for work, but the bank refused.
“I served this country as a teacher for 35 years and saved every penny and deposited my money at the bank, but they took it all,” she said. “This money belongs to my husband and me and our children.”
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Fatma Khaled reported from Cairo.
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By Jake Lucas and Axel Boada
December 18, 2025
World
Zelenskyy calls for US to respond to ‘signals’ Russia is ‘preparing to make next year a year of war’
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Ukrainian President Volodymyr Zelenskyy on Wednesday called for the U.S. and other allies to respond to bellicose “signals” from Russia.
“Today, we again heard signals from Moscow that they are preparing to make next year a year of war. These signals are not only for us. It is crucial that our partners see them, and not only see them but also respond — especially partners in the United States, who often say that Russia wants to end the war,” Zelenskyy asserted in a post on X.
Fox News Digital reached out to the White House for comment.
“Over the past few weeks, the President’s team has made tremendous progress with respect to ending the war between Russia and Ukraine, and as the President stated, he believes we are closer now than we have ever been,” a White House official noted.
UKRAINE SAYS IT CARRIED OUT FIRST-EVER UNDERWATER DRONE STRIKE ON RUSSIAN SUBMARINE IN NOVOROSSIYSK
Ukrainian President Volodymyr Zelenskyy is pictured during a press conference with Friedrich Merz, Federal Chancellor, on Dec. 15, 2025, in Berlin, Germany. (Florian Gaertner/Photothek via Getty Images)
“Yet the signals coming from Russia are the exact opposite, taking the form of official orders to their army. This Russian mindset must be recognized — and acted upon. When Russia is in this mindset, it will also undermine diplomacy — seeking, through diplomatic language and pressure over specific points in documents — to merely mask its desire to destroy Ukraine and Ukrainians, and the desire to legitimize Russia’s theft of our land. And then come other countries in Europe, which someone in Russia might one day label their so‑called ‘historical lands,’” Zelenskyy asserted in the post.
“Real protection is needed against this Russian case history of madness, and we will continue working with all partners to ensure that protection is in place. Security measures are needed, financial measures are needed — including actions on Russian assets — political measures are needed. And the courage of all partners is required: to see the truth, acknowledge the truth, and act accordingly. I want to thank everyone who supports Ukraine,” his post concluded.
Zelenskyy also conveyed the message in a Ukrainian-language video.
US OFFICIALS TOUT PROGRESS IN TALKS TO REACH ‘LASTING AND DURABLE PEACE’ BETWEEN UKRAINE, RUSSIA
In this photo distributed by the state agency Sputnik, Russia’s President Vladimir Putin speaks during an expanded meeting of the Russian Defense Ministry Board at the National Defense Control Center in Moscow on Dec. 17, 2025. (Mikhail TERESHCHENKO / POOL / AFP via Getty Images)
Russian President Vladimir Putin declared during a Defense Ministry board meeting on Wednesday that Russia will accomplish its goals, through either diplomacy or military force.
“The goals of the special military operation will undoubtedly be achieved. We would prefer to accomplish this and address the root causes of the conflict through diplomatic means. However, if the opposing side and its foreign patrons refuse to engage in substantive dialogue, Russia will achieve the liberation of its historical lands by military means. The task of creating and expanding a security buffer zone will also be carried out consistently,” Putin said, according to a Kremlin transcript.
HEADED FOR THE EXITS: WHY 3 DOZEN HOUSE MEMBERS AREN’T RUNNING FOR RE-ELECTION
Rep. Don Bacon, R-Neb., arrives for a House Republican conference meeting at the U.S. Capitol on May 6, 2025, in Washington, D.C. (Andrew Harnik/Getty Images)
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Rep. Don Bacon, R-Neb., a staunch proponent of U.S. support for Ukraine, asserted in a post on X, “Again… the U.S. should send 200 long-range and extremely accurate cruise missiles to Ukraine. Maybe then, Putin will get serious and seek peace. Putin started this war, and he’ll stop this war once he realizes he cannot win and that the cost of war is too high.”
President Donald Trump’s administration has been attempting to help broker peace between Russia and Ukraine.
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Following tense negotiations among the 27 member states, Commission President Ursula von der Leyen on Thursday pushed the signature of the contentious Mercosur agreement to January to the frustration of backers Germany and Spain.
The trade deal dominated the EU summit, with France and Italy pressing for a delay to secure stronger farmer protections, while von der Leyen had hoped to travel to Latin America for a signing ceremony on 20 December after securing member-state support.
Without approval, the ceremony can no longer go ahead. There is not set date.
“The Commission proposed that it postpones to early January the signature to further discuss with the countries who still need a bit more time,” an EU official told reporters.
After a phone call with Brazilian President Luiz Inácio Lula da Silva, Prime Minister Giorgia Meloni said she supported the deal, but added that Rome still needs stronger assurances for Italian farmers. Lula said in separate comments that Meloni assured him the trade deal would be approved in the next 10 days to a month.
The Mercosur agreement would create a free-trade area between the EU and Argentina, Brazil, Paraguay and Uruguay. But European farmers fear it would expose them to unfair competition from Latin American imports on pricing and practices.
Meloni’s decision was pivotal to delay
“The Italian government is ready to sign the agreement as soon as the necessary answers are provided to farmers. This would depend on the decisions of the European Commission and can be defined within a short timeframe,” Meloni said after speaking with Lula, who had threatened to walk away from the deal unless an agreement was found this month. He sounded more conciliatory after speaking to Meloni.
Talks among EU leaders were fraught, as backers of the deal – concluded in 2024 after 25 years of negotiations – argued the Mercosur is an imperative as the bloc needs new markets at a time in which the US, its biggest trading partner, pursues an aggressive tariff policy. Duties on European exports to the US have tripled under Donald Trump.
“This is one of the most difficult EU summits since the last negotiation of the long-term budget two years ago,” an EU diplomat said.
France began pushing last Sunday for a delay in the vote amid farmers’ anger.
Paris has long opposed the deal, demanding robust safeguards for farmers and reciprocity on environmental and health production standards with Mercosur countries.
The agreement requires a qualified majority for approval. France, Poland and Hungary oppose the signature, while Austria and Belgium planned to abstain if a vote were held this week. Ireland has also raised concerns over farmer protections.
Italy’s stance was pivotal.
However, supporters of the agreement now fear prolonged hesitation could prompt Mercosur countries to walk away after decades of negotiations for good.
After speaking with Meloni, Lula said he would pass Italy’s request on to Mercosur so that it can “decide what to do.”
An EU official said contacts with Mercosur were “ongoing,” adding: “We need to make sure that everything is accepted by them.”
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