SANAA (Debriefer)--The Sanaa-based salvation government has said that the decision to prevent the circulation of the newly printed banknotes in Houthi-run regions has worked and exposed fiscal mismanagement of the internationally recognised government and a Saudi-led coalition fighting in Yemen.
Houthi finance minister, Rashid Abu Lohoum, said: "The fiscal performance has been controlled at banks and exchange companies in cooperation with the society"," according to a statement carried by Almasirah TV.
The salvation government will authorize the central bank in Sanaa to manage all banks, he said, adding that they have plans to reduce the national debt and end colonial economic policies.
In December, the Houthi supreme economic committee prevented the circulation of new banknotes issued by the Saudi-backed government, saying the move was aimed at protecting the national currency from collapse.
The measure has deepened economic woes in the war-torn country. One of its direct impacts is that exchange firms have increased fees for money transfer from government-run regions into Houthi-run regions.
Last week, the Yemeni rial fell to its lowest level ever against foreign currencies, trading at 802 per US dollar in government-run regions. Economists expected it would fall further to trade 1.000 per US dollar by the end of this month.
The exchange rates are lower and somehow stable in Houthi-run regions, where one dollar is buying 602.