Iran-backed Houthis mint metal coins to solidify the monetary division

The Iran-backed Houthis have minted metal coins of 100 riyals, in a move aimed at overcoming the crippling crisis affecting the banking sector in their controlled areas.

They took this step after failing in attempts to print banknotes in China, India, and Russia.

Economists consider this step as a confirmation of their efforts to separate the economy and prevent the circulation of the new edition of the national currency, solidifying the separation and division of the economy and monetary policy between the legitimate government and those that control it.

They pointed out that the Houthi step will not solve the liquidity crisis suffered by the militias for a number of reasons, the first being the difficulty of carrying, storing, and transporting coins, not to mention the difficulty of trading or holding them as a personal wealth saved by citizens. In addition, the metal coins held by the Central Bank of Yemen in Sanaa do not exceed 19 million, and if the Houthis double this number, they will reach 19 billion, an amount that will not solve the liquidity crisis facing the banking sector.

The Houthis minted these currencies using the machines owned by the branch of the Central Bank of Yemen in Sanaa, after failing to contract with one of the famous companies for printing currencies in Russia and China, not to mention their failure to import currency printing paper, secret inks, machines, and printing supplies.

Economists said that the Houthis are seeking to replace 200 billion riyals of damaged currencies they hold in the bank. These include denominations of 100, 250, and 50 riyals, in addition to a large quantity of 500 and 1000 riyals denominations.