Cash Consortium of Yemen - Flash Update 26: YER Exchange Rate Volatility July Week 2


Key findings:

NOTE: Partners were not able to conduct interviews for week three of July due to the Eid vacation. Methodology: The analysis is predicated on assessing the averages of exchange rates between the spheres of influence for both actors. Enumerators were told to assess three exchange shops per district. However, due to travel constraints and the size of towns where enumerators are present, assessing three shops daily may not be possible.

• The IRG vs DFA exchange rate variation currently stands at a 400 YER difference.

• The exchange rate in IRG areas continues to be volatile and has increased to around 1000 after a brief appreciation in April. This is possibly contributing to the wide fluctuation in prices.

• The range between the maximum and minimum value of the exchange rate from July W1 to July W2 expanded in the South from 35 to 52 YER, indicating an increase in volatility, while the exchange rate in the North stayed the same 2 YER, indicating a stability.

• Additional monetary constraints by decision makers may impact the future exchange rates; these impacts will be monitored in future outputs.