WASHINGTON — The United States stated that the International Monetary Fund (IMF) will move to suspend its activities in Yemen once again, citing recent developments in the country’s south.

According to officials in Washington, the decision reflects growing concerns over instability and institutional fragmentation in southern Yemen, which have complicated the Fund’s ability to operate effectively. The IMF had only recently resumed limited engagement with Yemen after years of disruption caused by conflict and economic collapse.

The suspension is expected to affect ongoing consultations and technical support programs aimed at stabilizing Yemen’s fragile economy. U.S. officials emphasized that the IMF’s move underscores the urgent need for political consensus and improved governance to restore confidence in international financial cooperation.

Yemen’s economy has been battered by years of war, with GDP contracting sharply, inflation soaring, and the national currency losing significant value. 

The IMF previously halted its Extended Credit Facility arrangement in 2014, and its renewed engagement earlier this year was seen as a tentative step toward re‑establishing economic oversight IMF.

Observers warn that the latest suspension could further isolate Yemen from international financial institutions, complicating efforts to address the country’s severe humanitarian crisis and deepening economic vulnerabilities.