Afghanistan central bank moves to stabilize falling currency | Business and Economic News

The central bank of Afghanistan released a statement on Tuesday saying it had held several meetings with key players to stop the fall in Afghanistan.

The Central Bank of Afghanistan said on Tuesday that it was working to ensure the stability of Afghans, with the currency losing almost 12% of its value against the US dollar and a few days later, as the economic crisis deepens and inflation rises.

The sudden withdrawal of foreign aid after the Taliban victory in August has left the fragile Afghan economy on the brink of collapse, with food, fuel and other commodity prices rising rapidly.

The central bank said in a statement that it had held several meetings with foreign exchange dealers, representatives of commercial banks and to halt the fall in Afghanistan in the business sector.

“Based on its strategic planning policies, Da Afghanistan Bank has always tried to prevent volatility that could be detrimental to people’s purchasing power,” he said.

Taliban spokesman Zabihullah Mujahid also ordered the government’s economic committee to “take urgent measures to ensure the stability of Afghans” at a cabinet meeting.

The crisis has accelerated a lot in recent days. The Afghan traded around $ 77 before the fall of Kabul on Monday, and a week ago it fell to $ 112 in the morning at the Kabul Sarai Shahzada money market at 125 in the afternoon.

It recovered slightly on Tuesday and was trading around 114-115 after the central bank moved after the move.

“The Islamic Emirate said it would drop the dollar and issue dollars in the market and that is changing now,” said a trader in Sarai Shahzada, using the name of the new Taliban government.

Price increase

However, the pressure on Afghans has had a major impact on the economy, which is already plagued by daily necessities in an economy that is widespread and not paid by many who have been working for months.

Within a week, wholesalers said the price of a 50kg (110lb) sack of flour had risen by 20 to 40 per cent to 2,800-3,200 in Afghanistan, from a week ago to 2,300, the price of sugar had risen by a third. and more than 15 percent of rice.

According to a survey conducted by the World Food Program, 98 percent of Afghans did not eat enough, and seven out of 10 families borrowed food.

Dollars were physically sent to Afghanistan on hunger strike and cut off from the world financial system due to fear of US sanctions, the banking system is partially operational and central bank reserves are locked $ 9 billion out of the country.

Last week, the U.S. Treasury Department formalized a guideline authorizing personal shipments to Afghanistan and protected shippers and financial institutions from U.S. sanctions, offering hope to those with relatives outside the country.

But efforts to raise money have been hampered by international reluctance to fund the Taliban government, which has not yet been officially recognized by another country.

In the longer term, employers said the forecasts were hampered by the structural weakness of an economy whose main exports – not just illegal narcotics – were nuts and handmade carpets and the lack of a clear economic plan for the new government.