Alpha: The local currency lost 25% of its value in government-controlled areas last October

The Food and Agriculture Organization of the United Nations ( FAO ) confirmed that the local currency in areas under the influence of the Yemeni government lost 25% of its value during the past month.

The organization said in its report (Market and Trade Bulletin): “The local currency (Yemeni riyal) in the areas of the recognized government lost its value significantly against the US dollar in October 2024, after a temporary stability in September, as it decreased by 25% on an annual basis and 36% compared to the average of the last three years.”

The report added that the continued decline in the value of the local currency in government areas against the US dollar is "largely attributed to depleted foreign exchange reserves, exacerbated by the ongoing financial crisis."

He explained that food prices witnessed a slight increase in government areas last September, as they rose by (1-2%) on a monthly basis, and these price increases were primarily driven by the continued decline in the value of the local currency.

He pointed out that the standard food basket ( MFB ) increased in government areas by 2% on a monthly basis, 18% on an annual basis, and 35% compared to the three-year average, and "the highest annual increases were recorded in the governorates of Marib (27%), Taiz (27%), Hadramaut (17-25%), Al Mahrah (25%), Shabwa (24%), and Lahj (17%)."

The Yemeni riyal continues to decline against foreign currencies, as the exchange rate of the US dollar reached more than 2050 riyals, its lowest value in history.