The impact of foreign currency auctions issued by the Central Bank of Yemen on the exchange rat

Abstract

     This study aimed to know the impact of foreign currency auctions on the foreign exchange rate during the period from November 2021 to December 2022.

     To achieve this goal, the study used the descriptive analytical approach and quantitative measurement.

     Data on the study variables were collected from secondary sources represented by the annual reports of the Central Bank of Yemen, and the results of the auction analysis published on the bank's official website, and a standard model was built for them.

     The results of the study showed an inverse relationship between foreign currency auctions offered by the Central Bank of Yemen and the exchange rate.

     This relationship is explained by the fact that the auctions lead to an improvement in the exchange rate, but this improvement is not felt in the market because the amount of liquidity withdrawn returns to the market again in the form of obligations on the state