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Cash Consortium of Yemen - Flash Update 9: YER Exchange Rate Volatility 1st November 2020 (W2 & W3 of October)

Countries
Yemen
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ACTED
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Publication date

Introduction:

The Flash Update for Exchange Rate Volatility consolidates daily exchange rate data collection throughout Yemen by CCY partners. The data is split between the two main economic spheres: De facto Authority (DFA) and the Internationally Recognized Government (IRG). This flash update is meant to give insight into the exchange rate and allow the actors within the Yemen response to make more informed decisions. 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.

Key findings:

• The implementation of the new transfer system through the creation of a company is still on-going in the areas currently aligned with the central bank of Yemen in Aden
• IRG vs DFA exchange rate variation currently stands at a 27% difference
• The economy is still strained under the worldwide impact of COVID 19, mainly in trade and travel
• Remittance flows from Yemenis abroad into Yemen have continued to stagnate (see CCY Remittance tool)
• Clashes between STC and IRG continue to take place sporadically
• Due to a lower supply of USD, exchange shops continue to have irregular hours of operation

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