Yemeni central bank rejects Houthi newly minted 50-riyal coin

Aden (Yemen), July 14 (IANS) Yemen's internationally recognised central bank rejected the Houthi group's issuance of a freshly minted 50-riyal coin, denouncing the move as a "destructive act" that threatens the country's already fragile monetary system.

The Central Bank of Yemen, based in the southern port city of Aden, released a strongly worded statement on Sunday condemning the Houthis' decision to mint and circulate the new metal coin in Sanaa and other areas under their control.

The bank warned that it holds the Houthi group "fully responsible for all consequences and actions resulting from this dangerous escalation."

"The Central Bank rejects this absurd and destructive act by an illegal entity," the statement read, referring to the Houthi-controlled branch of the central bank in Sanaa as an illegitimate institution.

The Houthis announced Saturday that the new 50-riyal coin would enter circulation starting Sunday, reports Xinhua news agency.

The Houthi-controlled central bank in Sanaa justified the move as part of efforts to address the problem of damaged banknotes and improve the quality of Yemen's national currency.

The Houthis have implemented a ban on the entry of banknotes issued by the internationally recognised government into territories under their control.

The group has maintained control over much of northern Yemen, including the capital Sanaa, since a civil war erupted in late 2014. The conflict has created a complex web of competing authorities, with the internationally recognised government operating from Aden.

The militant group has also increased its attacks on commercial vessels in the Red Sea, saying they were intended to pressure Israel and its allies to lift the blockade on Gaza and end the ongoing military campaign, vowing to carry out further strikes.

The Aden-based Yemeni government has also condemned the attacks in strong terms.

--IANS

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