Afghanistan Business

Use of foreign currency declines in Nimroz, residents say

ZARANJ, Afghanistan — Residents of Nimroz province report a sharp decline in the use of foreign currencies, particularly the Iranian toman, in daily transactions. The change, they say, has eased financial losses and strengthened reliance on Afghanistan’s national currency, the afghani.

Nimroz, located in southwestern Afghanistan along the border with Iran, has long seen foreign currencies in use, a practice common in the country’s border regions. However, shopkeepers and residents in the provincial capital of Zaranj say the shift to afghanis has significantly improved local business operations.

“Thankfully, our business is now conducted in afghani currency,” said Gul Ahmad, a shopkeeper in Zaranj. “In the past, we suffered significant losses due to fluctuations between afghanis and tomans. It’s much better now—95 percent of transactions are in afghanis, and tomans are rarely used. We are satisfied and no longer experience losses.”

For years, the use of the Iranian toman in Nimroz exposed traders and residents to frequent financial risks, as the value of the toman fluctuated.

“In the past, when we bought goods, they were priced in tomans, and we would lose money,” said a local resident. “For example, we might purchase goods for 700,000 tomans one day, only to find the exchange rate had shifted, and the same amount was worth 750,000 tomans the next. This caused significant losses.”

Economists agree that the increased use of the afghani is a positive development for the province’s economy but caution that additional steps are needed to sustain this progress.

“Public awareness campaigns should encourage the use of the afghani and highlight its benefits for financial stability,” one economist said. “Additionally, the government must systematically remove worn-out banknotes from circulation to ensure the afghani remains a trusted medium of exchange.”

For residents of Nimroz, the growing reliance on their national currency is not just a matter of economic stability but also a step toward greater financial independence for the province.