Table 5 Main compounding factors related... | Emerald Publishing

Table 5

Main compounding factors related to market functionality

Second-order effects	Causal relationships	Sources
Economic collapse	Lack of basic commodities; Inflation and hyperinflation of prices Wholesalers withhold supplies due to highly volatile inflation and exchange rates and lack of foreign currency. Thus, retailers may not be able to restock regularly, driving demand shortages and price increases Poor exchange rate resulted due to malfunctioning banking system, trade deficit and blockade of air and seaports in 2017 Purchasing power With the depreciation of currency exchange value of Yemeni riyals, humanitarian organizations faced significant exchange losses, as they were bound to work at a negotiated exchange rate, which did not necessarily capture the difference between official and parallel rate Local traders had to resort to advance payment, tying up their funds	Caccavale et al. (2018), FAO et al. (2018), WHO (2017)
Economic collapse		ACAPS (2020a), World Bank (2020a)
Reliance on informal networks	Informality of retail market in Yemen creates difficulties establishing legal contracts with retailers As financial services and reserves dwindled, government support, including CVA via social safety net program for the most vulnerable people, has largely collapsed Local markets disrupted due to the economic collapse affected by the conflict Majority of Yemenis rely on remittances from abroad for livelihoods Central Bank of Yemen no longer has swift code, reducing operational capacity	Cash Learning Partnership (CaLP) (2018), REACH (2017)
Capacity investment	Lack of basic services and commodities Many traders were unable to coordinate supply chains after the start of the conflict Lack of electronic point of sale check-outs, limiting the potential for automated consumer demand analysis and stock management Remittances (electronic cash transfers) from abroad were significantly reduced, partly due to restrictions imposed on transfers to Yemeni banks The shift of the bank headquarters from Sana'a to Aden undermined its functioning capacity. Central Bank of Yemen in Sana'a no longer has a SWIFT code to allow external transfers, so its operational capacity is limited Payment methods are limited, without credit options between main suppliers (importers and milling factories)	ACAPS (2020a), Cash Learning Partnership (CaLP) (2018), REACH (2017), World Bank (2020a)

Second-order effects	Causal relationships	Sources
Economic collapse	Lack of basic commodities;Inflation and hyperinflation of prices Wholesalers withhold supplies due to highly volatile inflation and exchange rates and lack of foreign currency. Thus, retailers may not be able to restock regularly, driving demand shortages and price increases Poor exchange rate resulted due to malfunctioning banking system, trade deficit and blockade of air and seaports in 2017 Purchasing power With the depreciation of currency exchange value of Yemeni riyals, humanitarian organizations faced significant exchange losses, as they were bound to work at a negotiated exchange rate, which did not necessarily capture the difference between official and parallel rate Local traders had to resort to advance payment, tying up their funds	Caccavale et al. (2018), FAO et al. (2018), WHO (2017)
Economic collapse		ACAPS (2020a), World Bank (2020a)
Reliance on informal networks	Informality of retail market in Yemen creates difficulties establishing legal contracts with retailers As financial services and reserves dwindled, government support, including CVA via social safety net program for the most vulnerable people, has largely collapsed Local markets disrupted due to the economic collapse affected by the conflict Majority of Yemenis rely on remittances from abroad for livelihoods Central Bank of Yemen no longer has swift code, reducing operational capacity	Cash Learning Partnership (CaLP) (2018), REACH (2017)
Capacity investment	Lack of basic services and commodities Many traders were unable to coordinate supply chains after the start of the conflict Lack of electronic point of sale check-outs, limiting the potential for automated consumer demand analysis and stock management Remittances (electronic cash transfers) from abroad were significantly reduced, partly due to restrictions imposed on transfers to Yemeni banks The shift of the bank headquarters from Sana'a to Aden undermined its functioning capacity. Central Bank of Yemen in Sana'a no longer has a SWIFT code to allow external transfers, so its operational capacity is limited Payment methods are limited, without credit options between main suppliers (importers and milling factories)	ACAPS (2020a), Cash Learning Partnership (CaLP) (2018), REACH (2017), World Bank (2020a)