The impact of the Central Bank of Yemen's local currency issuances on the exchange rate during the period (2000-2022)

Abstract

This study aimed to identify the impact of the Central Bank of Yemen's issuance of local currency on the foreign exchange rate during the period 2000- 2022, focusing on the years 2017- 2022, due to the political and economic events that accompanied it.

     To achieve this goal, the study used the descriptive analytical approach and quantitative measurement, and collected data on the study variables from secondary sources represented by the annual reports of the Central Bank of Yemen in Aden.

     The data for this study were processed, and standard models were built based on time series, and standard models were estimated to test the study hypotheses based on a set of statistical and standard tests that are consistent with the nature of the collected data.

     The results reached by the study showed a direct relationship between the amount of new currency issuance and the foreign exchange rate.

     This relationship is explained by the fact that printing more local currency had a negative impact on the exchange rates of foreign currencies (increasing the number of units of the Yemeni riyal