Afghan currency drops value by 15 % decline

The Afghan currency has been rapidly losing its value against foreign currencies as it lost value by 15 % decline in the current year, said chairman of the Central Bank.

Khalil Sidiq, head of Central Bank declared that they have taken serious measures to reduce the exchange rate and will have legal interventions in currency market.

The Afghani is down 15 percent in the current year because of insecurity, capital flight, and absence of investments in the country.

The continuing fall of the local currency has not only worsened the Afghan economy but also dampened the Afghan spirit to rebuild the country, particularly at a time when they are preparing for an intense “Winter Offensive” against the armed Taliban group.

The fall of the Afghani has caused concerns not only among government officials but also among ordinary Afghan people.

“In the current year, the Afghani currency sank to 14.55 percent against foreign currencies, but we are trying to distribute enough money to the currency market to manage the exchange rate,” said, Khalil Sidiq, head of Central Bank.

The Central Bank spends tens of millions of dollars weekly to stem the fall of the Afghani as money continues to leave the country, traders said, reflecting a general lack of confidence to introduce reforms, stimulate growth, guarantee security and cut corruption.

Meanwhile, the officials in Dealers Union of Saraye Shahzada money exchange market in Kabul say that if the Central Bank distributes dollar to the market in a continued process, the dollar rate would be managed.

“With distributing money to the market three times in a week, the Central Bank can manage the dollar rate,” said Haji Zirak, spokesman of Saraye Shahzada Union.

In the past 14 years, despite the millions of dollars injected into the Kabul exchange market on a weekly basis, the bank is still unable to stop the Afghani free fall.