Yemen, Republic of Exchange Rate

Yemen’s official exchange rate has deteriorated dramatically over the 35‑year series, rising from a trough of 12.01 in 1994 to an all‑time peak of 1,789.10 in 2025, the latter placing the country 19th globally among 190 economies in the World Bank database. The steep depreciation reflects prolonged conflict, fiscal deficits and a shrinking export base, which have eroded confidence in the Yemeni rial and forced successive devaluations. By contrast, peer economies with similarly high rankings, such as South Sudan (2,205.55) and Tanzania (2,583.01), have experienced comparable volatility driven by political instability and commodity price shocks, while Korea’s much lower rate of 1,415.32 underscores the divergence between conflict‑affected states and more stable markets. The relentless upward trajectory suggests that unless substantial peace, structural reforms and external assistance materialise, the rial is likely to remain under pressure, with further devaluations probable in the near term.