Central Bank of Afghanistan reports 17.25% increase in currency value against US Dollar

Officials from the Central Bank of Afghanistan have announced that over the past year, the currency’s value has increased by 17.25% against the U.S. dollar.

On Thursday, September 5, the Central Bank officials provided a report on the past year’s achievements. They revealed that 149 licenses for currency exchange businesses and money service companies were issued, bringing the total number of permits issued to 1,780.

According to bank officials, over the past year, 7 billion, 186 million, and 544 thousand Afghanis in old banknotes were collected from central and provincial areas, incinerated, and replaced with new banknotes in the market.

The Central Bank noted that a new law for regulating currency exchange businesses and money service providers was introduced. This law aims to improve non-bank financial institutions’ regulation, standardization, and mechanization.

However, the World Bank had previously warned that starting in 2024, the value of the Afghan currency is expected to decline against all major currencies.

The ongoing instability of Afghanistan’s economy is a growing concern. While international support and aid organizations, including the UN, provide critical assistance, the economic foundation remains shaky and unsustainable. The dependency on external aid highlights the fragile nature of Afghanistan’s economy, which is struggling with a severe humanitarian crisis and rising unemployment.

Efforts to stabilize the currency and regulate financial institutions are positive steps, but they may not be enough to address the deeper economic challenges. The lack of a solid and self-sustaining economic infrastructure coupled with the continued humanitarian needs underscores the need for more comprehensive and resilient economic solutions.

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