Houthi's new currency widens Yemen's divides

Yemen's Houthi group sought no permission from any domestic authority when it decided last month to issue a new metal currency in a country plagued by an economic crisis.

On 30 March, the Houthi-controlled Central Bank of Yemen in Sanaa held a press conference to break the news to Yemenis: a new 100-riyal coin would be circulated within hours.

The announcement has sparked a heated debate across the country.

The group’s justification for issuing the new coin was to address the issue of damaged banknotes. As a consequence, citizens rushed to money centres in Sanaa to replace their obsolete bills with minted coins.

"The metal currency was coined according to international standards, and its circulation will not affect the exchange rates because it will only replace the damaged 100 riyal banknotes," Houthi-appointed Central Bank governor Hashem Ismael said.

The move, however, has infuriated Yemen's UN-recognised government, as well as multitudes of anti-Houthi economists, politicians, and civilians. They say that printing or issuing a new currency should be subject to scrutiny and is a decision that requires consultation.

This latest development only adds to the many divides between warring parties in the country, heightening the sense of separation between North and South Yemen.

It has also pushed the Aden-based internationally recognised government to take countermeasures, which will deepen the economic crisis in Yemen. This, in turn, will exacerbate the country's humanitarian situation.