Yemen Market and Trade Bulletin February 2025 - Issued on 23 March 2025

KEY HIGHLIGHTS

CONTEXT & OUTLOOK: With the deteriorating economic conditions, Ramadhan festivities have become less normal for most Yemenis as they struggle to afford them. This comes at a time of decline in the value of the local currency in GoY controlled areas , along with rising prices of basic food items and reduced income earning opportunities. As a result, many households can no longer afford their basic needs as they once could while traders are limiting credit sales. In addition, re-routing of ships to Aden and other southern ports is likely to further worsen the price problem and create larger consumption gaps.

EXCHANGE RATES: In February 2025, the Yemeni riyal (YER) in GoY-controlled areas continued to lose value, reaching nearly 2,265 YER per US Dollar. This represents a depreciation of 28% compared to the previous year and 41% compared to the three-year average. Meanwhile, in SBA-controlled areas, the YER remained stable at 532 YER per USD.

FOOD PRICES: While most staple food prices remained stable month-on-month in SBA areas, they experienced a slight increase in GoY areas. Year-on-year, prices in GoY areas were significantly higher in February 2025, with increases ranging from 23 to 41%, attributed to currency depreciation and high fuel costs.

MINIMUM FOOD BASKET (MFB): In GoY areas, the cost of the Minimum Food Basket (MFB) increased by 4 percent month-on-month. Despite the recent ban on wheat flour imports, and Ramadan's peak demand, the MFB prices in SBA areas remained relatively stable.

FOOD AND FUEL IMPORTS: In February 2025, northern ports registered increased flows, marking a slight recovery from the previous month, while food and fuel imports through Aden Port experienced a slight decline.
Notably, wheat grains were the major imported food items during the reporting month.

FUEL PRICES: In GoY areas, the prices of petrol and diesel rose by 2% and 8%, respectively, following upward review by the Oil company in Aden. The rise in gasoline prices comes amid the ongoing domestic cooking gas shortage affecting most the GoY areas. In contrast, fuel prices in SBA areas remained unchanged from January 2025 levels.

CASUAL LABOR WAGE RATES: Despite generally higher-than-average wages, casual laborers in both GoY and SBA areas continue to struggle with affordability due to high food prices, which have seen a 40% increase in in GoY areas. Contributing factors include currency devaluation in GoY areas and reduced job opportunities and unpaid salaries in SBA areas.

TERMS OF TRADE (TOT): In February 2025, both livestock-to-cereal and casual labour to cereal terms of trade remained stable in both GoY and SBA areas, trending above the three-year average.

LIVESTOCK PRICES: In February 2025, livestock prices showed contrasting trends between GoY areas, where prices increased and SBA areas, where prices decreased month-on-month. Year-on-year, livestock prices in GoY areas were significantly higher, rising by 31 to 33 percent, while livestock prices in SBA areas remained lower or stable.

[[{"type":"media","fid":"102424","view_mode":"default","instance_fields":"override","link_text":"market_and_trade_bulletin_-_feb_2025.pdf"}]]