Local News

Yemen Market Watch Report, Issue No. 5, September 2016

National Yemen
Yemen's public Markets
Written by NY Staff

Highlights

  • Prices of food and fuel commodities generally remained unchanged between August and September 2016, but continued to be significantly higher than the pre-crisis levels.
  • The cost of the minimum food basket also stabilized at YER 2,380 similar to that recorded in August 2016 but still 20% higher than the pre-crisis estimate.
  • Low level of imports and poor supply of commodities persistently led to scarcity of food and fuel commodities in most markets of the country.
  • According to Alert for Price Spikes (ALPS) methodology, in September 2016, normal situation prevailed for wheat flour, vegetable oil and red beans while sugar was on a crisis status. The ALPS indicator for the cost of the minimum food basket stabilized at normal level.

Macroeconomic Situation

The economic impact of the ongoing conflict-induced crisis has been devastating for Yemen, aggravating an already deteriorating pre-conflict economic performance. Salary payments are now irregular due to funding constraints of the Central Bank of Yemen (CBY). The unprecedented liquidity crisis coupled with the recent relocation of the Central Bank of Yemen from Sana’a to Aden is feared to further worsen humanitarian crisis due to its impacts on imports and further disruption of public sector salary payments. The parallel market exchange rate of the Yemen Riyal (YER) in September 2016 ranged from 270 to 320 per one US Dollar, which is muchhigher than the official rate (YER250/USD), which is also complicating the ongoing humanitarian crisis towards the highest catastrophic level ever.

Original Article