The Behavioral Impact of Co-Circulating 100 Riyal Banknotes and Coins in Yemen: A Field Study

This field study investigates the behavioral and social consequences of the simultaneous circulation of the 100 Riyal banknote and a newly introduced 100 Riyal coin in Yemen. Through observations and interviews with consumers and small vendors across urban and semi-urban markets, we identify a recurring cognitive bias: many consumers mistakenly perceive the older banknote as more valuable than the new coin, despite both having equal face value. These misjudgments are amplified under stress, distraction, and time pressure, often leading to transactional confusion or disputes. Drawing on behavioral economics and social psychology, the study explores how familiarity, denomination biases, and sensory cues contribute to these misperceptions. The findings underscore the need for policy adjustments and public awareness to ease the transition and promote monetary clarity in fragile economic settings.