KABUL, Afghanistan — The value of Afghanistan’s currency, the afghani, has declined sharply against the U.S. dollar in recent days, exacerbating economic concerns in a country already grappling with widespread poverty and instability.
To address the depreciation, the Taliban-run central bank, Da Afghanistan Bank (DAB), announced an auction of $16 million scheduled for Monday, Dec. 9, in an attempt to stabilize the currency.
“Da Afghanistan Bank will auction 16 million U.S. dollars on Monday. Eligible banks, money exchange companies, and financial service providers are invited to participate,” the bank said in a statement.
The exchange rate for one U.S. dollar has climbed to nearly 71 Afghanis, up from 64 Afghanis just two months ago, according to official data.
The currency’s devaluation is driving up the cost of essential goods, deepening the financial strain on Afghan households.
“People are already struggling with widespread poverty,” said a Kabul resident. “This will only deepen the roots of poverty in the country and bring more challenges for the people.”
Citizens have voiced concerns that the declining value of the afghani will further inflate food prices, making basic necessities increasingly unaffordable as winter approaches.
Economic experts attribute the currency’s decline to a combination of factors, including geopolitical developments in the Middle East and domestic policies under Taliban rule. Recent Taliban-imposed restrictions, such as the closure of medical institutes for women, are also seen as damaging the country’s economy and international reputation.
“Afghanistan’s current situation is far from ideal, and problems are increasing day by day,” said Bahram Ramesh, an economist. “For example, the closure of universities and institutes for women negatively impacts Afghanistan’s economy and the value of the afghani.”
A report released in October by the Special Inspector General for Afghanistan Reconstruction (SIGAR) highlighted the role of U.S. humanitarian aid in stabilizing Afghanistan’s economy. The report noted that the U.S. remains the largest donor to Afghanistan’s humanitarian sector, though it alleged that some aid has indirectly benefited the Taliban.
Experts argue that the flow of U.S. cash dollars into Afghanistan has played a critical role in supporting the afghani’s value. However, as economic and political challenges mount, maintaining stability in the currency exchange rate remains a pressing issue.
