The Kabul times, Afghanistan Trustable News Agency.
GovernmentNationalReport

Increasing the value of Afghani against foreign currencies during 2023

In the last two years, one of the serious debates following the great political change in the country has been the stability of the country’s currency against foreign currencies, especially against the US dollar, and the neighboring countries’ currencies that have continually lost their values against US dollar during 2023. According to the officials of Da Afghanistan Bank, the country’s central bank, the value of the country’s currency has increased by 26 percent during the year of 2023. The bank has considered implementing monetary policies, the circulation of Afghanis, prevention of foreign currency smuggling, restrictions on the transfer of cash abroad, prevention of unnecessary expenses within the government institutions, increasing exports, transparency as well as launching some national and international projects as the main reasons for the continued appreciation of the Afghani (AFG) during the year. In the meantime, the Acting Governor of Da Afghanistan Bank, Hedayatullah Badri has termed that appreciation of Afghani against other currencies, reducing inflation to a desirable level, improvement in the performance of the banking sector, promotion of Islamic banking, development of payment and information technology systems, printing new Afghani banknotes and in jecting in the market for collecting and incinerating old banknotes as the key achievements of Da Afghanistan Bank during 2023. In general, monetary and fiscal policies refer to the two most widely recognized tools used to influence a nation’s economic activity. Monetary policy is primarily concerned with the management of interest rates and the total supply of money in circulation and is generally carried out by central banks. The two policies are different from each other but important to each other. Fiscal policy is a collective term for the taxing and spending actions of governments. In short, central banks typically use monetary policy to either stimulate an economy or to check its growth. By incentivizing individuals and businesses to borrow and spend, the monetary policy aims to spur economic activity. Conversely, by restricting spending and incentivizing savings, monetary policy can act as a brake on inflation and other issues associated with an overheated economy. The relationship between the interest rate in the economy and the money supply is called monetary policy. The monetary policy has specific tools that can be used to influence inflation, growth and unemployment and it has less impact on the real economy. In order to implement such policies, the central bank will control and guide the economy at the macro level. In fact, the central bank is responsible for controlling and managing the money supply and interest rate and executing monetary policies in this way. The statistics and figures of major organizations such as the World Food Organization (WFP) and the World Bank also show that the value of Afghani has been stable against foreign currencies. In the meantime, the country’s central bank has also said that the country’s currency has been among the nine most stable currencies in the world in the last year. It is worth mentioning that continued counter-corruption, prevention of trafficking the US dollar from Afghanistan’s neighboring countries and banning the use of the US dollar in transactions are considered as the main reasons that help the Afghani keep its stability against foreign currencies. Besides the above three reasons, execution of the monitory policies, increasing domestic products, reduction in imports, balance in imports and exports level, launching some major projects in the country, good governance and necessary steps taken by the country’s central bank in the auction of the US dollar are considered other reasons for protection of the value of afghani against foreign currencies. Muqset

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The Kabul times, Afghanistan Trustable News Agency.