The Central Bank in Aden announced on Thursday to cancel dealing in printed banknotes before 2016 and to stop dealing with a number of banks.

The Yemeni Rial has hit all time low in the occupied governorates, while in Sana’a, owing to precautionary measures, the currency remained stable.

The steps taken by Aden Central Bank, which are initiated and led by the Saudi-led coalition, threaten to endanger the economy of the entire country.

In early April, the Saudi-backed government ordered commercial banks, Islamic banks, and microfinance banks to relocate their headquarters from Sana’a to Aden within 60 days. The Central Bank in Aden warned that banks failing to comply would face legal actions under the Anti-Money Laundering and Counter-Terrorism Financing Law.

Economists believe this decision is a punitive response to the Central Bank in Sana’a issuing a new 100 riyal coin to replace damaged paper currency. They argue the Saudi-led coalition has long aimed to force the Sana’a government to either accept the new illegal currency, causing inflation and burdening citizens, or face a cash shortage.

The coalition expected the old currency in Sana’a to run out, compelling acceptance of the new currency and causing a nationwide collapse of the Yemeni riyal. However, the new coin issued by the Central Bank in Sana’a has maintained currency stability and reduced inflation risks.