Witnesses say a car bomb has exploded in the southern city of Aden at a checkpoint steps away from the central bank, which has been relocated recently from the rebel-held capital, Sanaa.

The bomb injured three soldiers and caused panic in the busy commercial district of Crater, the witnesses said, speaking on condition of anonymity because of security concerns.

Aden is the temporary capital of the internationally-recognized government which was forced out of Sanaa by the rebels in 2014. A Saudi-led military coalition has since intervened and continues to battle the rebels alongside forces loyal to internationally recognized President Abed Rabbo Mansour Hadi.

This summer, Hadi ordered the relocation of the country's central bank from Sanaa to Aden, amid accusations that the rebels were misusing state funds.