KABUL, Afghanistan — The Taliban-controlled central bank announced on Sunday that it would auction $25 million in U.S. dollars, as the afghani experiences an unprecedented depreciation over the past two weeks.
This would mark the second auction within three days. On Saturday, Jan. 25, the bank had placed $20 million on the market.
Despite these measures, the afghani has continued to weaken, with the exchange rate climbing to 81.5 afghanis per dollar in markets across Afghanistan—a significant rise within a single week. The exchange rate for afghani was 70 against one dollar earlier this month.
The currency’s decline comes amid the cessation of most U.S. aid to Afghanistan, which previously played a key role in propping up the economy.
Economic analysts suggest the Taliban’s efforts to artificially maintain the value of the afghani over the past three years have been unsustainable. They argue that the withdrawal of international aid has exposed the fragility of the currency and exacerbated its decline.
“This monetary inflation will have severe consequences for the already fragile Afghan economy,” one economist noted. “It will deepen poverty and hunger, worsening the humanitarian crisis faced by millions of Afghans.”
