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Afghanistan’s central bank chief upbeat over stable AFN
The monthly average exchange rate between AFN and US dollar was recorded at AFN 72.0 per 1 USD.
The acting head of Da Afghanistan Bank (DAB) says that the value of the afghani (AFN) against the US dollar has remained stable compared to that of other currencies in the region.
Hadayatullah Badri said in a Supreme Council of Da Afghanistan Bank meeting this week that the liquidity situation in banks has improved because “people’s deposits in the Islamic banking sector have increased by 4 percent compared to the previous quarter.”
Issues that were also discussed at the meeting included the effective implementation of monetary policies, the state of the banking sector, efforts to develop Islamic banking, the mechanization of exchange activities and people’s access to financial services.
Last month, the UN’s World Food Program (WFP) reported that following political changes in August 2021, inflation surged in Afghanistan, peaking at 18.3 percent in July 2022.
However, it subsequently plummeted into deflation, reaching -9.0 percent in March 2024.
Similarly, food inflation decreased from +26 percent in June 2022 to -13.8 percent in March 2024.
The persistent deflation is reflecting a fall in food prices and weak consumer demand.
However, WFP stated: “While deflation supports low food prices, limited number of job opportunities and low wages will continue to weaken household purchasing power.”
Exchange Rate:
The monthly average exchange rate between AFN and US dollar was recorded at AFN 72.0 per 1 USD.
After its surge in January 2022, the value of AFN started to consistently appreciate against the US dollar during the year 2023 and remains relatively stable, hovering around AFN 70-74 per USD since November 2023.
Factors such as US dollar auctions by the Da Afghanistan Bank, ban on foreign currencies for domestic transactions, increased remittances, and UN dollar shipments significantly contribute to the stability of AFN, WFP reported.
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Mushroom harvest begins in Kandahar
In Kandahar, farmers who established mushroom farms with the support of international organizations have now begun harvesting their crops.
The Directorate of Agriculture, Irrigation, and Livestock of Kandahar stated that, as a result of its efforts and with financial support from the United Nations Office on Drugs and Crime (UNODC) and technical assistance from the Dutch Committee for Afghanistan, essential supplies worth $20,000 were distributed to 30 needy families in Khakrez district to establish mushroom farms. The harvesting process has now started.
Officials say the program aims to promote alternative crops to opium poppy, improve farmers’ livelihoods, introduce high-yield plants, and expand modern and standardized farming practices. According to them, each farmer can produce up to 10 kilograms of mushrooms in one month from just one kilogram of seeds at home—a process that is simple, low-cost, and highly profitable.
Mohammad Hanif Haqmal, spokesperson for the Kandahar Directorate of Agriculture, said: “For around 30 families, 23 types of tools necessary for mushroom farming were distributed. Seeds were also provided so they could establish farms and harvest crops. This is the first time mushroom is being cultivated in Kandahar. The Directorate of Agriculture will continue its efforts to promote this crop in other areas of the country so people can establish farms at home and increase their income. In Kandahar, the price of one kilogram of mushroom ranges between 350 and 400 Afghanis.”
Officials from the Dutch Committee for Afghanistan also confirmed that 23 types of tools and necessary materials for mushroom cultivation were previously distributed to the families, and the harvest is now underway. They consider the plant a suitable alternative to opium poppy and said they will continue supporting the farmers.
Abdulhadi Dawoodzi, representative of the Dutch Committee for Afghanistan in Kandahar, added: “We distributed 20 types of materials and tools necessary for planting and harvesting mushroom to 30 families, worth $20,000. This support serves as an alternative to opium cultivation.”
Farmers view mushroom as a viable substitute for opium poppy. They say the crop requires less effort and yields higher profits, making it a suitable option, especially during drought conditions.
Sibghatullah, a Kandahar farmer, said: “Mushroom can serve as a complete alternative to opium and hashish. Drought is intensifying every year, and this crop is a good substitute. We ask the organization to establish more farms and help market our products.”
Another farmer, Mohammad Naseem, added: “We can sell mushroom in local markets and to neighbors. Compared to opium and other narcotic crops, it is a better cultivation option.”
Officials from the Kandahar Directorate of Agriculture said that in recent months, they have increased efforts to identify and promote alternative crops and have implemented several programs to introduce high-yield plants suitable for Kandahar’s climatic conditions.
Latest News
WFP slashes aid by 80% as Afghanistan’s hunger crisis worsens
According to UN estimates, 3.5 million Afghan children under five are suffering from acute malnutrition, while more than 1.2 million pregnant and breastfeeding women face severe nutritional deficiencies.
The UN World Food Programme (WFP) has reduced its food assistance in Afghanistan by 80 percent, warning that hunger and malnutrition are escalating at a dangerous pace.
Due to severe funding shortages, the agency has cut support from 10 million vulnerable Afghans to just two million.
WFP officials say the situation is deteriorating rapidly. Deputy Executive Director Carl Skau cautioned that with winter fast approaching, Afghan children face an increased risk of death from severe malnutrition and freezing temperatures.
“Because of budget shortages, we have been forced to reduce our assistance in Afghanistan from 10 million people to two million,” Skau said.
“This winter, we cannot support large numbers of vulnerable families, and many children may lose their lives due to hunger and cold. Last year was one of the worst years for humanitarian aid, and we expect a 40% funding gap again in 2026.”
Skau warned that malnutrition among women and children could reach levels not seen in years.
According to UN estimates, 3.5 million Afghan children under five are suffering from acute malnutrition, while more than 1.2 million pregnant and breastfeeding women face severe nutritional deficiencies.
UN agencies have repeatedly stressed throughout the year that shrinking humanitarian budgets have left them unable to reach millions of Afghans still in urgent need of assistance.
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China, Afghanistan seek solutions to boost investor confidence
Azizi reaffirmed Afghanistan’s readiness to deepen cooperation, saying the government is committed to providing greater support and streamlined facilities for Chinese businesses.
Afghanistan and China are stepping up efforts to strengthen economic cooperation and resolve challenges faced by Chinese investors operating in the country.
Minister of Industry and Commerce Nooruddin Azizi held talks with the Chinese Ambassador and Commercial Attaché, where the diplomats outlined key obstacles hindering their investors. They urged closer coordination to ensure smoother business operations and to expand bilateral economic engagement.
Azizi reaffirmed Afghanistan’s readiness to deepen cooperation, saying the government is committed to providing greater support and streamlined facilities for Chinese businesses.
Officials from the Ministry of Industry and Commerce said the discussions mark an important step toward enhancing trade ties and building stronger economic partnerships between Kabul and Beijing.
Economic experts note that both domestic and foreign investment remain crucial to Afghanistan’s economic recovery. They stress that government institutions—particularly the Ministry of Industry and Commerce—must prioritize addressing the concerns of individuals and companies working in the country.
Private-sector representatives agree, adding that increased investment will help ease economic pressures and improve the overall business environment.
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