Why Did the Yemeni Central Bank Reject the Houthi's New 50-Riyal Coin?
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Synopsis
In a significant move, Yemen's central bank has condemned the Houthi group's new 50-riyal coin as a threat to the nation's fragile economy. This act underscores the ongoing tensions in Yemen, where competing authorities vie for control amidst a civil war. Discover the implications of this development on Yemen's monetary system and political landscape.
Key Takeaways
- The Yemeni central bank has condemned the Houthi's new 50-riyal coin.
- The Houthi group is viewed as an illegitimate authority in Yemen.
- The move threatens Yemen's fragile economy.
- Ongoing conflict complicates the nation's monetary system.
- International concern grows over Yemen's escalating tensions.
Aden (Yemen), July 14 (NationPress) The internationally recognized central bank of Yemen has dismissed the Houthi group's recent introduction of a newly minted 50-riyal coin, labeling it a 'destructive act' that poses a significant risk to the nation's already precarious monetary landscape.
Situated in the southern port city of Aden, the Central Bank of Yemen issued a vigorous statement on Sunday, denouncing the Houthis' initiative to produce and distribute the new coin within Sanaa and other regions under their authority.
The bank cautioned that it holds the Houthi faction 'fully accountable' for all repercussions and actions arising from this alarming intensification.
'This absurd and destructive act by an illegal entity is wholly rejected by the Central Bank,' the statement asserted, denouncing the Houthi-controlled central bank branch in Sanaa as a non-legitimate institution.
On Saturday, the Houthis declared that the new 50-riyal coin would commence circulation starting Sunday, according to reports from Xinhua news agency.
The Houthi-controlled central bank in Sanaa defended its decision as a measure aimed at resolving the issue of deteriorating banknotes and enhancing the quality of Yemen's national currency.
Furthermore, the Houthis have prohibited the entry of banknotes issued by the internationally recognized government into areas they govern.
Since the onset of the civil war in late 2014, the Houthis have maintained control over a significant portion of northern Yemen, including the capital Sanaa, creating a complex landscape of competing authorities, with the internationally recognized government functioning from Aden.
Additionally, the militant group has escalated its assaults on commercial vessels in the Red Sea, stating that these actions are aimed at pressuring Israel and its allies to lift the blockade on Gaza and cease the ongoing military operations, promising further strikes.
The Yemeni government based in Aden has also vehemently condemned these attacks.
Point of View
I emphasize that the actions of the Houthi group represent a significant escalation in the ongoing conflict in Yemen. The internationally recognized government must maintain its stance against any efforts that undermine the nation's economic stability. The situation remains complex, and we stand with the Yemeni people in seeking a resolution that restores peace and stability.
NationPress
14/07/2025
Frequently Asked Questions
What is the significance of the 50-riyal coin?
The 50-riyal coin represents a challenge to Yemen's already fragile monetary system, as it is seen as an illegal issuance by the Houthi group, which threatens economic stability.
Why did the central bank reject the new coin?
The central bank rejected the coin as it views the Houthi group's actions as a destructive move that undermines the legitimacy of Yemen's monetary policy and governance.
How has the conflict affected Yemen's economy?
The ongoing conflict has led to a fragmented economy, with competing authorities complicating economic governance and leading to instability in the currency and banking systems.
What other actions have the Houthis taken recently?
The Houthis have intensified attacks on commercial vessels in the Red Sea, claiming these actions are aimed at applying pressure on geopolitical adversaries.
What is the international response to this situation?
The international community remains concerned about the escalating tensions and is calling for a diplomatic resolution to restore stability in Yemen.
