By Al-Fassel | 2025-10-14

Counterterrorism forces in Yemen's temporary capital intercepted a shipment of currency-machines destined for the Iran-backed Houthis, thwarting an operation that economists warn would have accelerated the economic collapse already devastating ordinary Yemenis.

The seizure exposed how the Houthis seek to undermine Yemen's fragile financial system through currency manipulation that drives inflation, devalues wages, and makes basic necessities like food and medicine increasingly unaffordable.

On October 2, Yemen's Counter Terrorism Service announced it had seized the advanced printing equipment at Aden's container port following precise intelligence.

The machinery was capable of producing exact replicas of official Yemeni currency denominations.

The printers remain secured pending examination by specialized experts as investigations continue into the smuggling network, al-Mashhad al-Yemeni reported.

The intercepted shipment represents the latest escalation in the Houthis' systematic assault on Yemen's economy through unauthorized currency production.

Counterfeit schemes

Banking sources revealed the militia has already printed 200-riyal banknotes at private facilities in Indonesia after failed attempts in Russia.

It smuggled the counterfeit currency into Yemen during a truce period when vessels entered Hodeidah ports without standard inspections.

Since 2019, the Houthis have installed advanced printing equipment at their facilities, positioning themselves to manufacture additional currency once they secure banknote paper, al-Mashhad al-Yemeni said.

The militia has issued 50- and 100-riyal metal coins and 200-riyal notes, with reported plans to print 500- and 1,000-riyal denominations using the intercepted machines.

The Yemeni government has documented that Houthis have printed counterfeit currency equivalent to roughly $21 million to finance military operations and pay militia members rather than civil servants or address citizens' needs.

Economic warfare

Economists warn that the Houthis' unauthorized currency printing is not merely a financial crime, but a strategic weapon aimed at reshaping Yemen's economy to their advantage.

By injecting counterfeit riyals into circulation, the militia distorts the money supply, fueling inflation and eroding the real value of people's savings.

The Houthis' monetary manipulation effectively transfers wealth from citizens to the militia's leadership.

As the value of legitimate money falls, the militia spends newly printed notes at full face value.

It is a system designed to drain liquidity from society and redirect it to their war economy, according to economist Mohammed al-Jamaei.

The Houthis' parallel currency regime undermines the banking sector and strengthens the informal networks and black markets that the militia has relied on since seizing control, al-Jamaei told Yemen Daily News.

The result is a fragmented financial landscape where legitimate banks lose authority, and citizens face mounting economic insecurity.

"Those who print currency without backing rob the people, secretly and openly, and push them toward a silent famine," al-Jamaei said.