Economic collapse

Exiled Yemen government risks humanitarian catastrophe to cut off central bank

Reuters article by Sami Aboudi and Noah Browning

In Yemen's war of attrition, the Saudi-backed exiled government has now decided that the central bank is an easier target than the capital, shielded from its troops by 60 kilometers (40 miles) of daunting mountains teeming with fighters.

A decree this month to cut the bank off from the outside world is aimed at using economic pressure to vanquish the Houthi fighters of the Zaydi branch of Shi'ite Islam, who have ruled the capital and most of northern Yemen for nearly two years.

It means the Houthis may struggle to pay state employees, including teachers, doctors and the soldiers from an army that mostly fights on their side in the civil war.

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