Fight for control of Yemen's banks between rebels, govt to wreck economy

Yemen's Houthi rebels and its internationally recognised 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 centre 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 fron