Traders threaten strike in Houthi-controlled Yemen as rebels ban currency

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Traders in Houthi-controlled areas have called for an open strike starting on Wednesday to protest against the rebels’ decision to ban trading with new currency notes. (Supplied: Saaed Al-Batati)
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Workers at local exchange companies told Arab News on Monday that they would shutter businesses until Houthis revoked the decision or provided them with the old notes. (Supplied: Saaed Al-Batati)
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Workers at local exchange companies told Arab News on Monday that they would shutter businesses until Houthis revoked the decision or provided them with the old notes. (Supplied: Saaed Al-Batati)
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Updated 30 December 2019
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Traders threaten strike in Houthi-controlled Yemen as rebels ban currency

  • The Houthis recently banned people from using newly printed notes
  • The Yemeni government in Aden has condemned the decision

AL-MUKALLA, Yemen: Traders in Houthi-controlled areas have called for an open strike starting on Wednesday to protest against the rebels’ decision to ban trading with new currency notes issued by the internationally recognized government in Aden.

Workers at local exchange companies told Arab News on Monday that they would shutter businesses until Houthis revoked the decision or provided them with the old notes.

The strike would be the biggest act of civil disobedience against Houthi suppression since the Iran-backed rebels seized power in late 2014. 

The Houthis recently banned people from using the newly printed notes, asking them to replace their notes with a virtual currency called the “electronic riyal.” The move has caused widespread anger, with people leaving Houthi areas with their cash to avoid confiscation.

The Yemeni government in Aden has condemned the decision, calling it a pretext for ripping off people and warned against trading with the Houthi currency or handing over money to the Houthis. Several cabinet ministers did not respond to Arab News requests to comment on the decision.

Speaking to Arab News from inside Houthi-controlled areas, people expressed anger as many have kept their savings in the new notes. If they comply with the Houthis, they will be broke overnight.

“The people in the Houthi-controlled areas are experiencing a complex frustration,” a Yemeni journalist who lives in a Houthi-controlled city told Arab News on condition of anonymity for fear of reprisals.

“People face various security and economical troubles caused by the Houthis. They imposed the decision, indifferent to the already deteriorating humanitarian situation,” he said, adding that a large number of people refused to hand over their new notes to the Houthis, fearing bankruptcy or hunger. 

Residents say that the decision has created a black market where the new notes are changed with old ones at a lower price. Other residents have resorted to buying hard currencies from the black market at inflated rates. Some are smuggling themselves into government-controlled areas with bags of cash that they deposit into bank accounts or replace with old notes.

A trader in Sana’a who had 8,000,000 Yemeni riyals ($32,000) in the new notes traveled to the central province of Marib to replace them with old notes.

In September 2016, Yemeni President Abd Rabbo Mansour Hadi moved the central bank headquarters from Sana’a to the southern city of Aden to stop Houthis plundering its reserves. From its new headquarters, the bank printed new notes when the country was experiencing a severe cash crunch. The Houthis deemed the new notes illegal and accused the government of sinking the market with liquidity.

Experts say that the Houthi decision would have disastrous effects on the country’s troubled economy, stabilization of the currency and people’s lives.

“This decision is disastrous, improvizational and illogical and will have a wider negative impact on the economy,” Mustafa Nasr, director of the Economic Media Center, told Arab News on Sunday, adding that the Houthis would fail to impose their decision due to public mistrust.

“The Houthis cannot cancel a circulating currency or initiate another one in the same country mainly with the scarcity of the old notes,” he said, arguing that the Houthis are using the currency as leverage to pressure the Yemeni government in Aden to deal again with the central bank in Sana’a. 

“The Houthi group would not be able to put into place their electronic riyal. They are using this as a pressure tool on the international community and the internationally recognized government (of Yemen) to restore the central bank in Sana’a.”

Shortly after the Houthis began confiscating the new notes, banks and exchange companies suffered cash problems, triggering them to increase remittance charges five times.

Nasr warned that the larger impact of the Houthi decision would be on the stabilization of the currency, affecting everyone in the country.  

“It puts the country’s economy in the wind by undermining monetary policies that led to the stabilization of the riyal this year. It will stifle the private sector and force it into using under-the-table options,” he said.


Israeli tanks retreat from central Gaza camp, medics say 30 killed

Updated 6 sec ago
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Israeli tanks retreat from central Gaza camp, medics say 30 killed

CAIRO: Israeli military strikes killed at least 30 Palestinians overnight in the Gaza Strip, most of them in the Nuseirat camp at the centre of the enclave, medics said on Friday after some tanks pulled back from an area they had raided.
Medics said they had recovered 19 bodies of Palestinians killed in the northern areas of Nuseirat, one of the enclave's eight long-standing refugee camps.
Some tanks remained active in the western area of the camp and the Palestinian Civil Emergency Service said teams were unable to respond to distress calls from residents trapped inside their houses.
The rest were killed in the northern and southern areas of the Gaza Strip, medics added. There was no fresh statement by the Israeli military on Friday, but on Thursday it said its forces were continuing to "strike terror targets as part of the operational activity in the Gaza Strip".
Meanwhile, the Israeli authorities released around 30 Palestinians whom it had detained during the ongoing offensive in Gaza in the past months. The released people arrived at a hospital in southern Gaza for medical checkups, medics said.
Freed Palestinians, detained during the war, have complained of ill-treatment and torture in Israeli detention after they were released. Israel denies torture.
Months of efforts to negotiate a ceasefire in Gaza have yielded scant progress, and negotiations are now on hold.
A ceasefire in the parallel conflict between Israel and Lebanon's Hezbollah, an ally of Hamas, took effect before dawn on Wednesday, bringing a halt to hostilities that had escalated sharply in recent months and had overshadowed the Gaza conflict.
Israel's campaign in Gaza has killed nearly 44,200 people and displaced nearly all the enclave's population at least once, Gaza officials say. Vast swathes of the territory are in ruins.
The Hamas-led militants who attacked southern Israeli communities 13 months ago, triggering the war, killed some 1,200 people and captured more than 250 hostages, Israel has said.

France envoy urges Lebanon to pick president

Updated 8 min 48 sec ago
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France envoy urges Lebanon to pick president

  • Jean-Yves Le Drian’s visit to Lebanon follows a fragile ceasefire to end the war between Israel and Hezbollah
  • Lebanon has been without a president since Michel Aoun’s term ended in October 2022

BEIRUT: France’s special envoy on Friday said it was urgent for Lebanon to elect a president, after a parliamentary vote to end over two years without a head of state was announced for January.
Jean-Yves Le Drian’s visit to Lebanon follows a fragile ceasefire to end the war between Israel and Hezbollah.
“I came to Lebanon immediately after the ceasefire announcement to signal France’s support for its full implementation and to stress the urgent need, more than ever, to elect a president and restart the institutional process,” he said on Friday.
He said he was in support of Thursday’s announcement by Parliament Speaker Nabih Berri of a presidential election to be held on 9 January.
Lebanon has been without a president since Michel Aoun’s term ended in October 2022, with neither of the two main blocs – the Iran-backed Hezbollah and its opponents – having the majority required to elect one.
However, Hezbollah chief Naim Qassem said in a wartime speech that Hezbollah would “bring an effective contribution to the election of a president.”
Lebanese Prime Minister Najib Mikati said on Wednesday he hoped the ceasefire agreement would mark “a new page for Lebanon,” calling for a swift presidential election.
Le Drian held talks with Lebanese officials and foreign diplomats from the United States, Qatar, Saudi Arabia, and Egypt – countries working to address Lebanon’s presidential crisis.
The special envoy has visited Lebanon several times since being appointed to the position by French President Emmanuel Macron in June 2023.


Syria militants, allies shell Aleppo in shock offensive

Updated 28 min 34 sec ago
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Syria militants, allies shell Aleppo in shock offensive

  • The violence has killed 242 people, according to a Syrian war monitor
  • The fighters had on Thursday cut the highway linking Aleppo to Syria’s capital Damascus

BEIRUT: Militants and their Turkish-backed allies shelled Syria’s second city Aleppo on Friday, in a major offensive against government troops that has sparked some of the deadliest fighting the country has seen in years.

The violence has killed 242 people, according to a Syrian war monitor, most of them combatants on both sides but also including civilians, including 24 dead, most of them in Russian air strikes.

The offensive began at a sensitive time for Syria and the region, with a fragile ceasefire between Hezbollah and Israel taking effect earlier this week in neighboring Lebanon.

Syria’s civil war began when President Bashar Assad’s forces cracked down in 2011 on pro-democracy protests.

Since then, it has killed more than 500,000 people, displaced millions and battered the country’s infrastructure and industry.

Over the years, the conflict has morphed into a complex war drawing in militants and foreign powers, including Assad allies Russia, Iran and Hezbollah.

While the army regained control over most of the territory that it lost earlier in the war, the area where the militants and their allies are based has been subject to a truce since 2020.

This week, militants and factions backed by Turkiye, which neighbors Syria and supported the anti-Assad rebellion, launched a major surprise offensive against government forces.

On Friday, they shelled a university student residence in government-held Aleppo, northern Syria’s main city, according to state media, which reported four civilian deaths in the latest attack.

By Friday, they had wrested more than 50 towns and villages in northern Syria, according to the Syrian Observatory for Human Rights, the biggest advances that anti-government factions had made in years.

The fighters had on Thursday cut the highway linking Aleppo to Syria’s capital Damascus, according to the Britain-based Observatory.

“The highway has now been put out of service, after it was reopened by regime forces years ago,” said the monitor, which has a network of sources inside Syria.

The UN Office for the Coordination of Humanitarian Affairs said “more than 14,000 people — nearly half are children — have been displaced” by the violence.

At a press conference earlier this week, Mohamed Bashir of the militant Hayat Tahrir Al-Sham (HTS) said: “This operation aims to repel the sources of fire of the criminal enemy from the frontlines.”

HTS, led by Al-Qaeda’s former Syria branch, controls swathes of the northwest Idlib region as well as small parts of neighboring Aleppo, Hama and Latakia provinces.

The Idlib region is subject to a ceasefire, repeatedly violated but which had largely been holding, brokered by Turkiye and Russia after a Syrian government offensive in March 2020.

An AFP correspondent based in rebel-held areas said there were intense exchanges of fire in an area just seven kilometers (four miles) from the city of Aleppo.

HTS has close ties with Turkish-backed factions, and analyst Nick Heras of the New Lines Institute for Strategy and Policy said the fighters were “trying to preempt the possibility of a Syrian military campaign in the region of Aleppo.”

According to Heras, the Syrian government and its key backer Russia had been preparing for such a campaign.

Russia intervened in Syria’s civil war in 2015, turning the momentum of the conflict in favor of the president, whose forces at the time had lost control of most of country.

Turkiye, Heras said, may be “sending a message to both Damascus and Moscow to back down from their military efforts in northwest Syria.”

Other interests are also at stake.

As well as Russia, Assad has been propped up by Iran and allied militant groups, including Lebanon’s powerful Hezbollah.

Anti-government forces are, according to Heras, “in a better position to take and seize villages than Russian-backed Syrian government forces, while the Iranians are focused on Lebanon.”

A general in Iran’s Revolutionary Guards was killed in Syria on Thursday during the fighting, an Iranian news agency reported.

Iranian foreign ministry spokesman Esmaeil Baghaei said the deadly offensive was “part of a plan by the diabolical regime (Israel) and the US” and called for “firm and coordinated action to prevent the spread of terrorism in the region.”

During its war with Hezbollah in Lebanon, Israel intensified its strikes on Iran-backed groups in Syria including Hezbollah.

Rami Abdel Rahman, director of the Observatory, said Assad’s forces “were totally unprepared” for the attack.

“It is strange to see regime forces being dealt such big blows despite Russian air cover and early signs that HTS was going to launch this operation,” Abdel Rahman said.

“Were they depending on Hezbollah, which is now busy in Lebanon?”


Israeli military says Lebanese prohibited from moving south to several villages

Updated 29 November 2024
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Israeli military says Lebanese prohibited from moving south to several villages

  • Israel opened fire on Thursday toward what it called ‘suspects’ with vehicles arriving at several areas in the southern zone

DUBAI: Lebanese residents are prohibited from moving south to a line of villages and their surroundings until further notice, Israeli military spokesperson Avichay Adraee said on X on Friday.
Israel said it opened fire on Thursday toward what it called “suspects” with vehicles arriving at several areas in the southern zone, saying it was a breach of the truce with Iran-backed armed group Hezbollah, which came into effect on Wednesday.
Hezbollah lawmaker Hassan Fadlallah in turn accused Israel of violating the deal.
“The Israeli enemy is attacking those returning to the border villages,” Fadlallah told reporters, adding “there are violations today by Israel, even in this form.”
The Israeli military also said on Thursday the air force struck a facility used by Hezbollah to store mid-range rockets in southern Lebanon, the first such attack since the ceasefire took effect on Wednesday morning.
In his recent post, Adraee called on Lebanese residents to not return to more than 60 southern villages, saying anyone who moves south of the specified line “puts themselves in danger.”
The Lebanese army earlier accused Israel of violating the ceasefire several times on Wednesday and Thursday.
The exchange of accusations highlighted the fragility of the ceasefire, which was brokered by the United States and France to end the conflict, fought in parallel with the Gaza war. The truce lasts for 60 days in the hope of reaching a permanent cessation of hostilities.


Iraq tries to stem influx of illegal foreign workers from Pakistan, other nations

Updated 29 November 2024
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Iraq tries to stem influx of illegal foreign workers from Pakistan, other nations

  • The Iraqi labor ministry says the influx is mainly from Pakistan, Syria and Bangladesh, also citing 40,000 registered immigrant workers
  • Authorities are trying to regulate the number of foreign workers as Iraq seeks to diversify from the currently dominant hydrocarbons sector

KARBALA: Rami, a Syrian worker in Iraq, spends his 16-hour shifts at a restaurant fearing arrest as authorities crack down on undocumented migrants in the country better known for its own exodus.
He is one of hundreds of thousands of foreigners working without permits in Iraq, which after emerging from decades of conflict has become an unexpected destination for many seeking opportunities.
“I’ve been able to avoid the security forces and checkpoints,” said the 27-year-old, who has lived in Iraq for seven years and asked that AFP use a pseudonym to protect his identity.
Between 10 in the morning and 2:00 am the next day, he toils at a shawarma shop in the holy city of Karbala, where millions of Shiite pilgrims congregate every year.
“My greatest fear is to be expelled back to Syria where I’d have to do military service,” he said.
The labor ministry says the influx is mainly from Syria, Pakistan and Bangladesh, also citing 40,000 registered immigrant workers.
Now the authorities are trying to regulate the number of foreign workers, as the country seeks to diversify from the currently dominant hydrocarbons sector.
Many like Rami work in the service industry in Iraq.
One Baghdad restaurant owner admitted to AFP that he has to play cat and mouse with the authorities during inspections, asking some employees to make themselves scarce.
Not all those who work for him are registered, he said, because of the costly fees involved.
Some of the undocumented workers in Iraq first came as pilgrims. In July, Labour Minister Ahmed Assadi said his services were investigating information that “50,000 Pakistani visitors” stayed on “to work illegally.”
Despite threats of expulsion because of the scale of issue, the authorities at the end of November launched a scheme for “Syrian, Bangladeshi and Pakistani workers” to regularise their employment by applying online before December 25.
The ministry says it will take legal action against anyone who brings in or employs undocumented foreign workers.
Rami has decided to play safe, even though “I really want” to acquire legal employment status.
“But I’m afraid,” he said. “I’m waiting to see what my friends do, and then I’ll do the same.”
Current Iraqi law caps the number of foreign workers a company can employ at 50 percent, but the authorities now want to lower this to 30 percent.
“Today we allow in only qualified workers for jobs requiring skills” that are not currently available, labor ministry spokesman Nijm Al-Aqabi told AFP.
It’s a sensitive issue — for the past two decades, even the powerful oil sector has been dominated by a foreign workforce. But now the authorities are seeking to favor Iraqis.
“There are large companies contracted to the government” which have been asked to limit “foreign worker numbers to 30 percent,” said Aqabi.
“This is in the interests of the domestic labor market,” he said, as 1.6 million Iraqis are unemployed.
He recognized that each household has the right to employ a foreign domestic worker, claiming this was work Iraqis did not want to do.
One agency launched in 2021 that brings in domestic workers from Niger, Ghana and Ethiopia confirms the high demand.
“Before we used to bring in 40 women, but now it’s around 100” a year, said an employee at the agency, speaking to AFP on condition of anonymity.
It was a trend picked up from rich countries in the Gulf, the employee said.
“The situation in Iraq is getting better, and with salaries now higher, Iraqi home owners are looking for comfort.”
A domestic worker earns about $230 a month, but the authorities have quintupled the registration fee, with a work permit now costing more than $800.
In the summer, Human Rights Watch denounced what it called a campaign of arbitrary arrests and expulsions targeting Syrians, even those with the necessary paperwork.
HRW said that both homes and work places had been targeted by raids.
Ahmed — another pseudonym — is a 31-year-old Syrian who has been undocumented in Iraq for the past year and a half.
He began as a cook in Baghdad and later moved to Karbala.
“Life is hard here — we don’t have any rights,” he told AFP. “We come in illegally, and the security forces are after us.”
His wife did not accompany him. She stayed in Syria.
“I’d go back if I could,” said Ahmed. “But life there is very difficult. There’s no work.”