International rejection of the Houthis’ new currency: “Undermining the financial sector in Yemen”

Monitor/ News Room

Several countries, most notably of wihch the United States, Britain, France, and the European Union, have announced that the Houthi group’s issuance of a new metal currency is a step that undermines the financial sector and threatens to further divide Yemen.

The European Union mission in Yemen said in a statement that “the European Union expresses its deep concern about the Houthi decision to issue a new 100 Yemeni riyal coin, which has led to an escalation in the economic field.”

The statement considered that “unilateral decisions that risk deepening the division of the Yemeni economy, undermining the banking sector and the country’s compliance with international standards on combating money laundering and financing terrorism do not serve the cause of peace and prosperity for the Yemeni people.”

The statement pointed out that “constructive engagement with the UN-led peace efforts that aim to negotiate on key economic issues is the only way forward,” stressing that the European Union “will continue to support the role of the Central Bank of Yemen (run by the Yemeni government) and Governor (Ahmed) Ghaleb in maintaining the stability of the financial sector.”

For its part, the US Embassy in Yemen said in a statement posted on its “X” account on Thursday that “the United States condemns the Houthis’ issuance of counterfeit currency in place of the official Yemeni currency.”

The statement added that “it is necessary to prevent the counterfeit currency from entering the market.”

The statement considered that “the actions of the Houthis threaten to further divide the Yemeni economy, undermine the integrity of the banking sector within Yemen, and jeopardize Yemen’s commitments to international counterterrorism standards.”

He pointed out that “unilateral options that lead to deepening the fragmentation of the Yemeni economy and harming the livelihood of the people do not help achieve peace,” noting that “the United States supports the role of the Central Bank in Aden in maintaining the stability of the financial sector.”

The British Embassy in Yemen said in a statement that “this decision threatens to destabilize the banking sector by deepening divisions in the already fragile Yemeni economy,” and warned that “a divided economy will only lead to the erosion of the interests of the Yemeni people.”

The statement called on “the Houthis to stop this reckless behavior and engage in UN efforts to resolve the economic fragmentation.”

In the same context, the French Embassy in Yemen said in a statement that “this illegal decision issued by an unrecognized entity contradicts the international obligations that the Yemeni government is committed to regarding anti-money laundering and counter-terrorism.”

The statement warned that this unilateral action by the Houthis deepens the country’s division at a time when the Yemeni people need unity, especially the unity of currency.

The statement pointed out that France supports the Central Bank in Aden in its mission to ensure the stability of the financial sector in Yemen, and also supports the efforts of the UN envoy Hans Grundberg, including those related to the economic issues of future negotiations.

On Saturday, the Houthi-affiliated Sana’a Bank announced the printing of a new 100-riyal coin as part of what it called confronting the problem of damaged currency, in a step that the Central Bank of Yemen in Aden considered a serious and illegal escalation, warning against its circulation.

Observers and economic experts considered the Houthi move to be likely to deepen the economic division in the country and a step towards building a fully independent economy