16/7/2025–|Last update: 22:46 (Mecca time)
The economic and banking situation increases in Yemen Complexing, with the Houthi group announcing the launch of the second edition of the 200 -riyals monetary paper for trading starting today, Wednesday, days after the issuance of a new metal currency, the category of 50 riyals, and the Yemeni (internationally recognized) government refused the measure, which it considered “an actual destruction and absurdity”.
This development reveals economic and political dimensions that exacerbate the suffering of the Yemenis in a country suffering from a humanitarian crisis, which is the “worst” in its modern history, according to United Nations.
Last Saturday, the Houthi group, which controls the capital Sanaa And a number of Yemeni governorates, the issuance of a new metal currency of 50 riyals (approximately 20 cents), according to a statement by the Yemeni Central Bank of the group.
The Houthis have previously announced a 100 -riyals metal coin in April 2024, and the move was conducted by denouncing the legitimate government and European missions in Yemen.
In a statement, the Yemeni government rejected the Houthi measure, and considered it “a continuation of the economic war that the militias exercise on the Yemeni people, and a coordination of the previous agreement between the two parties that were signed on July 23, 2024, under regional and international sponsorship.”
About a year ago, the UN envoy to Yemen, Hans Grendberg, announced the agreement of the Yemeni government and the Houthi group on “several measures to reduce the escalation in relation to the banking sector, after mutual measures between the two parties at the time.”
At that time, the Houthis announced a 100 -riyals metal currency instrument for the first time, while he replied Central Bank The Yemeni government of the Yemeni government, by stopping the licenses of 6 of the country’s largest banks, is located in the capital, Sanaa, which is controlled by the Houthi.
Then, the European Union’s missions denounced The cowboys France Yemen has the Houthi decision and warned that “unilateral decisions will deepen the division of the Yemeni economy, and do not serve the peace and prosperity of the Yemenis.”
The justifications of both parties
The Houthi group considered the announcement of a new metal currency instrument, “a deliberate and responsible procedure, to be a substitute for damaged banknotes of the same category.”
According to a statement by the Central Bank in Sana’a, the group clarified that this “comes within the framework of finding solutions to the problem of damaged banknotes and enhancing the quality of the circulating national criticism.”
She claimed that these measures “will not have any increase in the monetary mass or any effect on exchange rates.”
In turn, the Yemeni government rejected the Houthi measures, and stressed in a statement to the Central Bank in the temporary capital, Aden, that this act is “a devastating futile act that targets the lives of Yemenis and exacerbates the catastrophic economic situation in the country.”
The government pointed out that “this dangerous uprising act by the Houthi militia is overthrown of the announcement of July 23, 2024 issued by the international envoy, which was carried out under regional and international sponsorship.”
The agreement that I sponsored stipulated United Nations “To cancel decisions and procedures against banks from both sides, and to stop in the future from any similar decisions or procedures.”
A dangerous escalation
In this regard, Yemeni economist Majid Al -Daari considered that the Houthi measure is “a coup and a challenge to the legitimate government and the regional and international community.”
“Printing a new currency is the most dangerous escalation stage in the economic file, and it ends all previous understandings and international efforts related to normalizing economic conditions, ending the crisis related to the banking sector and unifying the currency.”
He continued, “The Houthis have proven that they are the strongest and controllers of the economic file, while the government does not have any options to respond.”
Al -Daari explained that the government’s problem lies in “abandoning the strongest decisions to punish banks under the control of the Houthis.”
He pointed out that the government could “invest this in the monetary or banking sector, but it was satisfied with the international and regional pressure and retracted its decisions, and thus became devoid of any claws related to the economic file.”
Yemen is suffering a major financial crisis that has increased its impact that has stopped exporting oil since 2022, as a result of the repercussions of the conflict between the government and the Houthis, which began after the latter’s control of Sanaa and several governorates at the end of 2014.
“Important step”
On the other hand, the economist, Dr. Rashid Al -Haddad, believes that the step taken by the Houthi group is “natural and important and addresses the financial liquidity crisis in the capital, Sanaa, and the rest of the provinces under its control.”
He added in an interview with Anatolia, “This step has no inflationary impact on the exchange of currency in the places of the Houthi control, and it falls within the framework of the treatments for the liquidity crisis that the local market suffers from.”
Al -Haddad explained that the Houthis “control the Yemeni market (70%), which requires them to put solutions and treatments in light of the presence of large quantities of currency that was printed before the year 2014, and is currently in the rule of damage.”
He pointed out that the group “will proceed with these treatments despite the American restrictions imposed on them and classify a terrorist group.”
On January 17, 2024, it was classified US The Houthi group, a global terrorist organization, in response to its ongoing attacks on civilian ships in Red SeaAnd the decision entered into force 30 days after the classification decision.
A parallel economy
The professor of economics at the University of Aden, Dr. Aref Al -Saqqaf, said that the Houthi announcement of printing a new currency, whether metal or paper, is a “direct challenge to the Yemeni government as the internationally recognized authority to manage Monetary In Yemen.
“Printing a new currency deepens the critical division in the country, and creates a dual economic reality that increases the suffering of citizens and complicates the trade movement between the governorates,” Al -Saqqaf added.
He continued, “This declaration represents a political and economic message to the regional and international society that the Houthi group imposes a fait accompli and seeks to manage a parallel economy outside the legitimacy, which may be reflected in the opportunities for a political settlement and raises concern about the unity of the Yemeni financial system.”
Al -Saqqaf said, “The possible result of this critical version is more loss of confidence in the national currency, the increase in dependence on foreign currencies, and the expansion of the recession and economic division in the country,” Al -Saqqaf said.