Value of Rial increases recovery on the way

The value of Yemeni Riyal has increased against the US Dollar over the past week, where the USD exchange rate fell to YR 217, compared to about YR 250 last July.
 
Economic experts told Yemen Observer that the increase of dollar came with the increasing demand of the dollar to cover the importing season for food due to Ramdan and clothes for Eid.
 
The increase of the dollar led to price increases on all products and commodities but when the Yemeni riyal improves against dollar, the prices remain high regardless of the decrease in value.
 
Mustafa Naser, the head of SMEC told Yemen Observer that we expected the prices to go down
 
after the decrease of dollar value but the absence of control in the market encouraged greedy traders to do what ever they want.
 
Money exchangers said to the almotamar.net that the exchange rate of USD continued to retreat over the past days after it settled for about 20 days at YR 240.
 
The Riyal lost about 25 percent of its value during last June and July amid mutual accusations between the Central Bank of Yemen (CBY) and the exchange market who is standing behind the decline in the riyal value.
 
Government sources say that fiscal polices adopted by the government would reduce the value of the dollar against the riyal.
 
The CBY has intervened 9 times since the beginning of this year to supply the local market with foreign currencies, most recently on July 29 when it pumped USD 57 million into the market, bringing the total amount since the start of the year to about USD 1.15 billion.

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