Afghani has hit its lowest value this year, trading at 79 Afghanis to the U.S. dollar from 70 Afghanis earlier this month.
Data from the Taliban-run central bank shows that the currency has significantly depreciated in recent months. Just four months ago, one U.S. dollar was exchanged for 66 Afghanis in Kabul’s markets. The current rate represents a decline of over 1,100 Afghanis per 100 dollars.
To stabilize the currency, the central bank has auctioned more than $50 million over the past month. However, the efforts have had little impact, and the Afghani continues to lose value.
The depreciation of the Afghani has driven up the cost of essential goods, worsening economic conditions for ordinary citizens. Residents report struggling to afford basic food items, which have seen noticeable price hikes in recent weeks.
“The dollar rate has gone up, and all food prices have increased. I bought groceries for my home; the prices were very high. Only God knows the pain in our hearts,” said Jawid, a resident of Kabul.
Shopkeepers in Kabul confirmed the rising prices, noting that the cost of a sack of flour has increased by 50 Afghanis, five liters of cooking oil by 50 Afghanis, and seven kilograms of sugar by 10 Afghanis.
Current Prices in Kabul’s Markets:
One sack of flour: 1,500 Afghanis
Five liters of oil: 410 Afghanis
Seven kilograms of sugar: 380 Afghanis
“Compared to a month ago, prices have gone up, but there are no buyers. People are out of money. There’s no work or business, and people are broke,” said a shopkeeper in the capital.
The decline in the Afghani comes amid fears of reduced U.S. aid. The recent victory of Donald Trump and his warnings about cutting financial support to Afghanistan have further undermined confidence in the country’s economic stability.
Earlier, Tim Burchett, a Republican congressman from Tennessee, introduced a bill to increase oversight of U.S. funding to Afghanistan. The legislation, titled the “No Tax Dollars for Terrorists Act,” seeks to ensure that American aid does not indirectly support the Taliban.
The bill would require the State Department to implement policies that prevent U.S. funds from reaching Taliban-controlled entities. It also mandates detailed reports on cash assistance programs in Afghanistan, outlining steps taken to safeguard aid.
Economic experts argue that the Taliban’s reliance on dollar auctions has done little to stabilize the currency. Since most goods in Afghanistan are purchased in dollars, these auctions fail to address the root causes of currency depreciation.
