KABUL, Afghanistan — The Taliban-run central bank announced it will auction $25 million on Wednesday, February 5, in an effort to stabilize the declining value of the afghani.
The move comes as Afghanistan’s currency has depreciated sharply in recent weeks, reaching an unprecedented low of 80 afghanis per U.S. dollar at one point last month. As of Tuesday, February 4, the exchange rate stood at 74.8 afghanis per dollar, according to market reports.
Last week, Taliban auctioned $62 million in a similar attempt to manage exchange rates.
In a statement, the central bank said that banks, currency exchange firms, and money service providers meeting the eligibility criteria can participate in the auction.
The bank also emphasized that successful bidders must settle their accounts by the end of the same day and that partial payments will not be accepted—winners must submit the full amount in cash.
The depreciation of the afghani is partly attributed to reduced financial assistance from the United States, following an executive order by Donald Trump that cut a portion of U.S. aid to Afghanistan.
The combination of these aid reductions and the Taliban’s monetary policies has contributed to ongoing currency instability, raising concerns among businesses and consumers in the country.
