News - Yemen: The General Federation of Yemeni Trade Unions has warned of the dangers posed by escalating measures targeting vital economic and service sectors in Yemen. These measures are being carried out by the Saudi-backed government, with encouragement from the United States and overt collusion from Saudi Arabia.

In a statement, the Federation highlighted that the escalation has severely impacted commercial banks managing 80% of the country's banking activity, halted transactions using the old currency, and attempted to target remittances from approximately six million expatriates. The telecommunications sector, a critical service sector and significant employer, has also been targeted.

One of the measures includes a directive to Yemen Airways to urgently transfer remaining company departments from Sana'a to Aden and deposit ticket sales proceeds into the company’s accounts at the Central Bank in Aden or its bank accounts abroad. This step aims to destroy the airline, disrupt the travel market, and further impose a devastating blockade on the Yemeni people.

The Federation emphasized that this continuous economic escalation adds significant burdens to millions of Yemenis and constitutes a declaration of full-scale war. The measures taken by the Saudi-backed government will not positively impact the living and humanitarian conditions in the southern provinces but will instead exacerbate the severe market recession and increase suffering. This threatens the stability of living and economic conditions for approximately 24 million people living in provinces governed by the Sana'a government.

The Federation called on the UN, all unions and labor movements worldwide, and Arab and International Labor Organizations to fulfill their humanitarian and moral responsibilities to stop this irresponsible escalation, which is pushing millions of Yemenis to the brink of famine. It held the Saudi-Emirati coalition countries responsible for this dangerous escalation and all resulting humanitarian consequences.

On Tuesday, the Central Bank of Yemen (CBY) warned of the ongoing escalation targeting the banking sector, driven by directives from the Saudi regime and influenced by American and British orders. An official source at the CBY informed Saba News Agency that these renewed attacks on the banking sector, especially by the Central Bank in Aden, are a response to Yemen's stance against the genocide committed by Israel against the Palestinians.

In early April, the Saudi-backed government ordered commercial banks, Islamic banks, and microfinance banks to relocate their headquarters from Sana'a to Aden within 60 days. The Central Bank in Aden warned that banks failing to comply would face legal actions under the Anti-Money Laundering and Counter-Terrorism Financing Law.

Economists believe this decision is a punitive response to the Central Bank in Sana'a issuing a new 100 riyal coin to replace damaged paper currency. They argue the Saudi-led coalition has long aimed to force the Sana'a government to either accept the new illegal currency, causing inflation and burdening citizens, or face a cash shortage.

The coalition expected the old currency in Sana'a to run out, compelling acceptance of the new currency and causing a nationwide collapse of the Yemeni riyal. However, the new coin issued by the Central Bank in Sana'a has maintained currency stability and reduced inflation risks.

The United States is seen as driving the decision to pressure Sana'a regarding Gaza, with the Saudi-backed government using it to avoid peace obligations and disrupt the roadmap.