KABUL, Afghanistan — The afghani has continued to weaken against the U.S. dollar over the first quarter of 2025, despite repeated assurances from Taliban officials that they have maintained monetary stability.
From early January through the end of March, the afghani lost significant ground, falling from around AFN 68.20 per dollar in early January to as high as AFN 71.70 by the last week of March — a depreciation of nearly 5 percent over three months.
The depreciation was gradual but consistent:
January 1, 2025: AFN 68.20
January 31, 2025: AFN 69.00
February 15, 2025: AFN 70.10
February 29, 2025: AFN 70.90
March 25, 2025: AFN 71.70
The most notable spike occurred in late February and early March, despite the central bank under Taliban authority conducting multiple U.S. dollar auctions intended to stabilize the market.
“This is a clear indication that currency interventions alone cannot offset deeper economic pressures,” said a Kabul-based economist, who spoke on condition of anonymity due to security concerns. “As soon as the auctions stop, the dollar regains strength, showing that the market lacks underlying confidence.”
The Taliban-run central bank has insisted that its policies have kept inflation in check and preserved monetary balance. But economic observers say the decline reflects broader vulnerabilities — including a shrinking formal economy, declining exports, and ongoing international isolation that continues to restrict access to Afghanistan’s foreign reserves.
The central bank’s official bulletins, which set benchmark exchange rates used by local money exchangers, now list the U.S. dollar at AFN 71.70, the highest level since mid-2022.
With foreign aid sharply reduced and private sector activity subdued, analysts warn that without structural reforms or a thaw in international relations, the afghani may face further depreciation in the months ahead.
