ADEN, Yemen, May 30 (Xinhua) -- The Central Bank of Yemen, run by the internationally recognized government, announced on Thursday its decision to suspend dealings with six major commercial banks operating in the Houthi-controlled areas of the country.

The move comes as the deadline set by the central bank is approaching for these banks to relocate their headquarters from the Houthi-controlled capital Sanaa to the temporary capital Aden in the south.

In a press statement, Central Bank Governor Ahmed bin Ahmed Ghaleb Al-Maabqi said the move was a response to these banks' non-compliance with Yemeni banking laws and regulations, as well as their continued cooperation with the Houthi group, which the government has designated as a terrorist organization.

"These banks have violated the rules of banking operations and legal provisions by implementing the Houthi group's instructions," the statement read. "This intervention is necessary to force them into compliance and ensure the safety of Yemen's banking sector."

The affected institutions, among Yemen's largest, have been instructed to continue providing services to the public until further notice. However, the central bank based in the southern port city of Aden has barred all other banks, exchange houses, and money transfer agents from conducting transactions or dealing with the listed banks.

The move is the latest in a series of escalating financial measures aimed at undermining the Houthis' control over state institutions and the economy, according to Yemeni government officials.

In April, the central bank ordered all banks to relocate their main operations to Aden within 60 days, threatening legal action against non-compliant firms.

Yemen has been gripped by financial paralysis, with the Houthi authorities in Sanaa preventing the circulation of newly issued banknotes by the government in Aden and introducing coins unrecognized by the country's central bank.

As the conflict enters its 10th year, the economic repercussions have been devastating for Yemen's civilians, pushing millions to the brink of famine in what the UN has called one of the world's worst humanitarian crises. Enditem

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