Business
Concerns Mount Over Climbing US Dollar Rate Against Afghani
Afghans are expressing concerns over the rapidly falling value of the Afghani against the United States dollar, which continues to climb.
One US dollar (USD) was accounted for 71.70 Afghanis on Sunday which shows rare increase rate for US dollar against Afghani over the last 16 years.
The money exchangers union in Kabul says lack of flooding the market with more US dollars by the central bank and the rise of USD rate in global markets have caused the Afghan currency to lose its value in the markets.
“The Central Bank has been supplying [the US dollars] three times per week in the market in the past, but now the bank only supplies twice per week, which causes its value to be increased. In addition, insecurities also have an impact [in this regard],” said Haji Zirak, the deputy head of money exchangers union.
However, Da Afghanistan Bank (Central Bank) said that no changes have been considered in supply of USD in the market, adding the USD has gained value in global markets.
“It is not our goal to maintain demand of the market by [supplying] dollars, but our aim is stability of the rates so that the rate of imported products doesn’t get increased,” said the Central Bank spokesman Aimal Ashur.
The Afghanistan Chamber of Commerce and Industries (ACCI), meanwhile, said that due to smuggling of US dollars to neighboring countries, the value of Afghani continues to fall with a corresponding rise in the exchange rate.
“The borders are open, and the demand of neighboring countries to dollars is more, and this issue causing the dollar to be smuggled to neighboring countries,” said ACCI spokesman Sayam Pasarlai.
Following the matter, some economic experts urging the government to prevent the growth of dollars against Afghani by halting the use of foreign currencies in the markets, otherwise, the issue will lead the country into crisis.