The Houthi-controlled central bank, led by Hashem Ismael, announced the new coin at a news conference in Sanaa on Sunday, stating it was produced according to international specifications and standards.

The bank plans to introduce coin currencies in smaller quantities.

The Aden central bank, however, described the Houthi move as "illegal" and "escalatory," urging residents and financial institutions in Houthi-controlled areas to avoid using the new currency, which they deemed "fake." The central bank in Yemen's southern city of Aden criticized the Houthis' control in the northern part of the country for issuing a new currency and replacing short-supply banknotes, warning of accountability for any irresponsible escalation and potential complications in financial transactions.

Yemen is divided into two economic areas, with the internationally recognized government in Aden and the Houthis in Sanaa.

The central bank moved from Sanaa to Aden in 2016 due to accusations of fund misuse by the Houthis.

The Houthis sought to alleviate concerns about the new currency's legality and potential impact on the Yemeni riyal by stating that it would replace scarce banknotes and was issued under their central bank's regulations.

The Houthis responded to the Yemeni government's actions by halting salaries for public employees in areas under their control and banning the use of Aden-issued banknotes.

They also initiated an economic war, obstructing imports through government-controlled ports and damaging oil terminals in Hadramout and Shabwa.

The Yemeni riyal is valued differently in Houthi and government territories, with the former trading at 533 riyals per dollar and the latter at 1,661 riyals per dollar.

When the Houthis took power in late 2014, the riyal was worth 215 per dollar.

Mustafa Nasr, head of the Studies and Economic Media Center, warned that introducing a new coin currency would widen the economic rift and intensify the economic conflict between the Yemeni government and the Houthis.

The Houthi group in Yemen plans to issue new currencies as part of their effort to establish an independent economy.

This move could lead to further currency production and potential responses from Yemen's central bank and international monetary agencies.

The Houthis prefer coins due to their ease of production and minting, despite the higher cost.

Meanwhile, accusations have been made against the Houthis for covering up civilian deaths in Radda, after they blew up a house on March 19, killing at least nine people and injuring dozens more.

The Houthis reached an agreement to reconstruct damaged houses, provide compensation to families of the deceased, and prosecute those responsible for a bombing that killed several civilians in Yemen.

However, a Yemeni activist named Nasser Ali Al-Sanae claims that the Houthis coerced the last surviving family member, Ibrahim Al-Raimi, into signing a document to bury his family, and no soldiers involved in the bombing have been tried.

The Houthis assert that they have questioned the soldiers and already compensated the affected families.