KABUL — The Afghani has sharply depreciated against the U.S. dollar over the past week, with the exchange rate rising by nearly 300 Afghanis per hundred dollars in just three days, despite continued efforts by the Taliban-run central bank to stabilize the currency.
Da Afghanistan Bank, the country’s central bank, put $20 million up for auction last Thursday in an attempt to maintain the Afghani’s value. However, as of Saturday, the exchange rate stood between 73.23 and 73.50 Afghanis per dollar — a notable jump from around 70 Afghanis just weeks earlier.
The decline coincides with a significant reduction in U.S. foreign aid to Afghanistan. The weakening of the Afghani has raised fresh concerns about the country’s economic stability under the Taliban administration, particularly as the effects of recent U.S. policy changes ripple through the region.
Since returning to power in 2021, the Taliban have repeatedly claimed they are managing the economy through national revenue and without dependence on foreign assistance. But analysts say the group has relied heavily on U.S. dollar auctions to artificially prop up the currency.
“The Taliban have maintained the Afghani’s value by injecting large amounts of dollars into the market,” said an economist based in Kabul. “Now that the flow of dollars is diminishing, we’re seeing the currency’s actual vulnerability.”
The depreciation also follows U.S. President Donald Trump’s recent executive orders aimed at reducing — and in some cases cutting off — aid to Afghanistan, a move that has begun to affect liquidity and foreign exchange reserves in the country.
Economists warn that continued currency instability could drive up inflation and deepen the economic hardships faced by millions of Afghans.
