In a surprising turn of events, Afghanistan’s currency, the Afghani, has emerged as the star performer of this quarter. Reports from international media have indicated that the afghani’s value has surged by approximately 9% during this period.
What made “Afghani” the best?
The remarkable increase can be attributed to a combination of factors, including the infusion of billions of dollars in humanitarian aid and a burgeoning trade relationship with Asian neighbors.
To maintain control over the currency’s stability, Afghan authorities have taken measures such as restricting online trading and issuing stern warnings of punitive actions, including imprisonment, for rule violators.
In stark contrast, Afghanistan’s neighbor, Pakistan, has witnessed its currency, the rupee, depreciate by almost 22% over the course of the current calendar year, despite a recent 6% recovery this month. The foreign exchange landscape in Afghanistan primarily revolves around money changers, while remittances enter the country through the informal Hawala system.
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As per analysts, the afghani is expected to maintain its current stability levels until the end of the year. With the easing pressure on the Afghani, Afghanistan’s central bank has increased the monthly dollar withdrawal limit for businesses to $40,000, up from $25,000, and for individuals to $600 a week, compared to the previous limit of $200 set two years ago.
These developments underscore the evolving economic landscape in Afghanistan as it navigates a complex path towards stability and growth.
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