The Houthi leadership has reacted with fury to the Central Bank of Yemen's (CBY) decision in Aden to cease dealings with certain banks and replace old banknotes, accusing Saudi Arabia of being complicit in an "American conspiracy" aimed at undermining their control.

In a televised address on Thursday, May 30, Houthi leader Abdul-Malik al-Houthi denounced the CBY's decision as an "aggressive step and a dangerous game," claiming it was part of a broader American strategy to support Israel. He directly accused the US of pressuring Saudi Arabia to pressure banks in Sana'a, warning that Riyadh would face "serious consequences" if it participated in what he called "the service of Israel."

Houthi officials echoed these sentiments, with Supreme Political Council member Muhammad Ali Al-Houthi dismissing threats from Yemen's "enemies" and spokesperson Mohammed Abdul Salam branding the CBY's actions as a "dangerous step" that could ignite war. Both officials repeated the group's leader's warning to Saudi Arabia, urging it to avoid being "entangled in the American trap."

Houthi negotiator Abdul-Malik Al-Ajri further escalated the rhetoric, calling for the group's leader's warnings about the banks to be taken "very seriously" and declaring Sana'a's readiness for "all possibilities of escalation." He accused the US of targeting the Houthis for their support of Gaza and urged neighboring countries to remain neutral, warning that involvement would make them complicit in an "American war on Yemen."

The Houthi-controlled branch of the CBY in Sana'a responded by banning dealings with 13 banks in areas controlled by the internationally recognized Yemeni government, citing their alleged violation of banking regulations and sharing financial data with "hostile entities." 

The Houthis have previously accused the CBY's decisions of being a "conspiracy" orchestrated by Saudi Arabia, alleging that Riyadh is using its "mercenary tools" to undermine their control. 

The CBY's decision to cease dealings with 6 banks on Thursday came after they failed to comply with the bank's April ultimatum to relocate their headquarters to Aden. The CBY had cited the need to consolidate financial control in the temporary capital and ensure compliance with anti-money laundering regulations. 

The escalating rhetoric and actions from both sides highlight the deep divisions within Yemen's banking system and the potential for further financial instability in the war-torn country.