HOUTHI COIN ROLLOUT ROILS YEMEN FACTIONS

 

Tensions escalated Sunday between Yemen's rival warring factions after the Houthi group announced issuing a new 100 riyal coin, a move swiftly rejected by the internationally recognized government as a dangerous escalation involving counterfeit currency.

The Houthi-controlled Central Bank of Yemen, headquartered in the capital Sanaa, unveiled its plan to circulate the new 100 riyal coin starting Sunday to substitute banknotes of the same denomination that have been rendered damaged and unusable.

Hashim Ismail, the Houthi-appointed governor of the Sanaa central bank, told a press conference that the currency is ready and has been minted in accordance with international standards. He assured the public that introducing the new coin will not affect exchange rates as it is solely intended to replace damaged 100 riyal notes.

However, the government-controlled Central Bank of Yemen, based in the country's temporary capital of Aden, swiftly rebuffed the Houthi plans in a strongly worded statement. It warned all parties against utilizing any currency issued by the bank's Sanaa branch seized by the Houthi militia.

The statement described the Houthi coin launch as a dangerous and unlawful escalatory act that fails to consider citizen interests. It denounced the new currency as counterfeit since it was issued by an illegal entity.

The clash between the rival central banks underscores how Yemen's central banking system has been caught in the crossfire of the nation's larger conflict since the internationally recognized government was compelled to relocate from Houthi-held Sanaa in 2015.

The government has accused the rebels of draining the Central Bank's Sanaa reserves to fund their war effort, while the Houthis say the bank's relocation crippled their ability to pay public sector salaries.

The standoff has resulted in a glut of tattered banknotes circulating in northern Yemeni regions under Houthi control during the past years, as the Houthi group refuses to accept newly issued currency from the internationally recognized government, compounding economic woes in the war-ravaged Arab nation.

To read the complete article, see:
Economic turmoil deepens as Yemen's rival factions feud over Houthi coin rollout (https://www.dailynewsegypt.com/2024/04/01/economic-turmoil-deepens-as-yemens-rival-factions-feud-over-houthi-coin-rollout/)

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