Taliban central bank burns 5.2 billion Afghanis in worn banknotes

KABUL, Afghanistan — The Taliban-run Central Bank of Afghanistan, said Sunday that it has destroyed approximately 5.2 billion Afghanis ($73 million) in worn-out banknotes over the past year.

The bank said that new banknotes have been circulated in the market to replace the destroyed banknotes.

According to the bank, the Afghan currency has seen nearly an 18% increase in value against other currencies during the solar year 1402 (March 2023 to March 20, 2024).

This comes as Kabul residents last week complained about an increase in worn-out banknotes, especially 50 and 100 in Kabul markets.

They have called on the Central Bank to release more new notes to facilitate everyday commerce.

Analysts have linked the deterioration of banknotes to physical handling and the lack of automated counting and sorting machines. In November 2022, a shipment of new Afghani banknotes was received, indicating efforts to refresh the nation’s currency supply.