Cash Consortium of Yemen - Flash Update 27: YER Exchange Rate Volatility July Week 4 & August Week 1
Key findings:
• The IRG vs DFA exchange rate variation currently stands at a 418 YER difference.
• The exchange rate in IRG areas continues to be volatile and has increased to above 1000 for the first time 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 W4 to Aug W1 expanded in the South from 46 to 54 YER, indicating an increase in volatility, while the exchange rate in the North shrank from 6 to 4 YER, indicating a decrease in volatility.
• Additional monetary constraints by decision makers may impact the future exchange rates; these impacts will be monitored in future outputs. It has also been noticed that the exchange rate companies/stores have suspended their operations for around three working days following notification from the central bank.
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.