The US-based Bloomberg News Agency, known for providing business and economic news to investors and for increasing competition between businesses newswires has reported that trade with Asian neighbors has propelled Afghanistan’s currency to the top of global rankings this quarter. Based on the Bloomberg’s report, the Islamic Emirate has also unleashed a series of measures to keep the Afghani in a stronghold, including banning the use of dollars and Pakistani rupees in local transactions and tightening restrictions on bringing greenbacks outside the country. “The currency controls cash inflows and other remittances have helped the afghani climb around 9 percent this quarter,” data compiled by Bloomberg show. It says the Afghani is up about 14 percent for the year, putting it third on the global list, behind the currencies of Colombia and Sri Lanka. In Afghanistan, foreign exchange is now traded largely via money changers-locally called Sarrafs – who put up stalls in markets or operate from shops in cities and villages. The bustling, open-air market Sarai Shahzada in Kabul, where the equivalent of tens of millions of dollars cross hands every day. There is no limit to trading, according to the central bank. Based on the report, Da Afghanistan Bank, the country’s central bank, is auctioning up to $16 million almost every week to support the currency. As pressure on the currency eased, the central bank has increased the limit for dollar withdrawals to $40,000 per month for businesses from $25,000 and $600 a week for individuals from $200 two years ago. The afghani traded around 78.30 per dollar on Tuesday. In early September this year, the World Bank Afghanistan Economic Monitor provided a summary of Afghanistan’s economic developments and key economic indicators for the month of August of the current year. In its report, the World Bank said that the Afghani (AFG) has kept rising against foreign currencies, particularly the U.S. dollar. According to the World Bank report, Afghani rose by 41.2 percent against the Iranian Toman, 29.3 percent against the Pakistani Rupee, 7.3 percent against the U.S. dollar, 6.0 percent against the Chinese Yuan, and 4.9 percent against the Euro. It remained stable against the Indian Rupee. By August 24, 2023, the AFN-to-USD rate was 83.1, marking a 3.7 percent increase since August 15, 2021,” the report said. According to the World Bank report, the AFN’s gains stem from the ban on foreign currencies for domestic transactions, limited domestic money supply, higher remittances, and UN dollar shipments. The World Bank’s report also pointed to the decline of inflation in Afghanistan. The year-on-year headline inflation hit -9.1 percent in July 2023, driven by -12.6 percent deflation in food and -5.0 percent in non-food segments. The report says core inflation also fell to – 2.8 percent in June 2023. The Islamic Emirate has been praised at national and international levels for keeping the country’s currency stable in the past two years. Afghanistan’s currency is now considered as the most stable currency in the region. Muqset
Afghanistan’s currency gets top global rankings this quarter
