Yemeni Rial

The Yemeni rial (Arabic: ريال يمني) is the official currency of the Republic of Yemen. Its ISO 4217 code is YER. It is issued and managed by the Central Bank of Yemen. The rial is subdivided into smaller units called fils, but due to sustained currency depreciation, fils have no practical use in circulation.

The currency exists in both banknote and coin forms of various denominations. Banknotes used in daily commerce tend to be of high face value, a result of the currency's long-term decline in value.

History

Before unification in 1990, Yemen was two separate states: North Yemen (the Yemen Arab Republic) used the rial, and South Yemen (the People's Democratic Republic of Yemen) used the South Yemeni dinar. Following unification, both currencies circulated together for a transitional period before the dinar was removed from circulation, leaving the rial as the country's sole currency.

Value and Exchange Rate

The rial has experienced sustained depreciation against the US dollar, particularly since the onset of civil conflict in 2014–2015. Factors cited include reduced oil export revenues, a decline in foreign currency entering the country, and war-related expenditures.

Division of Monetary Authority

In 2016, the Central Bank headquarters was relocated from Sana'a to Aden, where it operates under internationally recognized government authority. The Houthi administration in Sana'a continues to operate a separate central bank. This has resulted in two parallel currencies of the same denomination: the north maintains the use of older banknotes, while the south has issued new ones. Consequently, different exchange rates exist between the northern and southern regions.