KABUL, Afghanistan — In an effort to stabilize the Afghan currency, Taliban on Wednesday issued a six-point decree banning the transfer of more than $5,000 through airports and more than $500 through land borders.
The decree warns that violators will be arrested and imprisoned. The move follows a sharp decline in the value of the afghani against foreign currencies, which has led to soaring food prices and increased hardship for Afghan households.
The steep depreciation of the afghani accelerated after the United States halted aid to Afghanistan. In an attempt to curb the decline, the Taliban’s central bank has auctioned $121 million in less than a month. However, the measure has had little effect. Last month, only $16 million was auctioned, yet the afghani has lost more than 1,000 units in value per $100 over the past month.
On Wednesday, the Taliban announced additional measures to control the outflow of foreign currency. Individuals caught transferring more than the permitted amount of dollars or gold through airports and border crossings will face prison sentences—one month for every $100,000 ($1,265) and one year for every $1 million ($12,658). Any confiscated cash or gold will be deposited in the central bank.
The decree also mandates the use of the afghani for all transactions and prohibits the import of regional foreign currencies into Afghanistan.
Despite the Taliban’s efforts, the central bank has struggled to prevent the currency from losing value, exacerbating economic difficulties for ordinary Afghans.
“The dollar has gone up, prices have skyrocketed, and there’s no work,” said Ahmad Shah, a Kabul resident. “I spend the whole day on the streets and make just 10 to 20 afghanis ($0.13–$0.25). I have 10 people to feed—what can I do?”
Another resident, Noor Ahmad, said his earnings have barely covered rent. “Since morning, I’ve only made 30 afghanis ($0.38),” he said. “I have to pay 2,000 afghanis ($25) for rent, and I don’t even have electricity or water.”
Over the past week, the price of essential food items has surged between 50 and 300 afghanis ($0.63–$3.80).
Rising Food Prices in Kabul Markets:
50 kg bag of flour: 1,550 afghanis ($19.60)
50 kg bag of rice: 3,000 afghanis ($38)
5 liters of cooking oil: 600 afghanis ($7.60)
7 kg of sugar: 400 afghanis ($5)
Shafiullah, a shopkeeper, said rising dollar rates have driven up prices. “A sack of chickpeas was 600 afghanis ($7.60), now it’s 800 afghanis ($10.10). Beans were 750 afghanis ($9.50), now they’re 800 ($10.10),” he said.
In addition to restricting cash flows, the Taliban’s central bank has increased scrutiny of currency exchange markets. Authorities have warned money changers and financial service providers that their activities are being closely monitored.
