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- The YER in GoY areas continued to lose ground to the US$ for the third successive month since hitting historic lows in November 2023: the exchange rate between the Yemeni Riyal (YER) and US Dollar (US$) was unchanged in February 2024 in areas under the Sana’a Based Authorities (SBA) but depreciated by 5 percent in Government of Yemen (GoY) controlled areas month-onmonth (m-o-m) (Fig. 1). The YER has lost significant ground to the USD in GoY areas having depreciated by 24 percent and 35 percent year-on-year (y-o-y) and against the 3-year average (3-YA), respectively, correspondingly while gained value in SBA areas by 4 percent and 10 percent, respectively. The currency depreciation, driven by depleted reserves and depleted export earnings from crude oil and gas exports, is largely responsible for increased food prices in GoY areas.
- Food and fuel import volumes remained normal despite severe maritime disruptions in the Red Sea: basic food and fuel imports through the three major seaports of Al Saleef, Al Hodeidah and Aden are still flowing uninterrupted despite the upheavals in the Red Sea, enabling ample food and fuel availability country wide (Figure 2).
- Fuel prices remained very high in GoY areas although recently stabilized: Fuel (diesel and petrol) prices in SBA and GoY controlled areas remained unchanged during February 2024 from their levels in January 2024 due to sufficient stocks (Figure 4). However, prices of petrol and diesel in GoY areas increased by 25 percent compared to the same period in 2023, while dropped by 20 percent and 5 percent, respectively, for diesel and petrol in SBA areas. The increased fuel price in GoY areas is partly driven by depreciated value of the local currency and is contributing to increased food prices.
- Food prices remained very high in GoY areas notwithstanding recent modest increase: Staple basic food items (Basmati rice, kidney beans, cooking oil, and wheat flour) remained largely unchanged m-o-m in SBA areas but increased slightly (about 4 percent) in GoY areas, on account of reduced global food prices and stable import flows. However, food prices are higher compared to the same month last year in GoY areas (3 to 25 percent) while lower by 8 to 20 percent in SBA areas over the same period. The former because of reduced value of the local currency (YER) and increased fuel prices. Prices of other basic food items are significantly elevated (33 - 54 precent) in GoY areas but slightly reduced in SBA areas against the 3-year average (Figure 5).
- The cost of the Minimum Food Basket (MFB) remained very high GoY areas even with recent modest increase (Figure 5). At the same time, populations in SBA areas have relatively lower purchasing power than their counterparts in GoY areas despite SBA’s price interventions and exchange rate control measures. Monitoring data indicate that about 35 percent of the population rely on government salaries as their main source of income in GoY areas while casual labour (54 percent) and humanitarian food assistance (18%) are the primary income sources in SBA areas. SBA controlled areas suspended payment of salaries to civil servants, while the GoY continues to pay salaries to its civil servants although intermittently