Global Condemnation Over Houthis' Unilateral Currency Issuance in Yemen
The newly minted 50-rial and 200-rial coins, introduced by the Houthi-controlled Central Bank in Sana'a, were denounced by the European Union, United States, United Kingdom, and France. The EU described the issuance as 'illegal counterfeiting,' asserting that only the internationally recognized Central Bank in Aden holds the legitimate authority to print currency.
Yemen's government in Aden condemned the move as a violation of national sovereignty and a dangerous escalation that threatens to deepen economic divisions. Financial experts warned that the introduction of unbacked currency could fuel inflation and undermine public confidence in the monetary system.
The U.S. Embassy in Yemen stated that the Houthis' actions jeopardize the integrity of the banking sector and urged financial institutions to reject the unauthorized currency. Analysts believe the Houthis may be attempting to establish a parallel economy, further entrenching Yemen's political and financial fragmentation.
The Central Bank in Aden has warned of potential sanctions against any entities that accept or circulate the new currency.
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