DAB to auction $16 million on Saturday

Da Afghanistan Bank (DAB) says it will auction $16 million on Saturday, aimed at keeping the value of the country’s currency stable in the market against foreign currencies. 

Da Afghanistan Bank also known as the Central Bank of Afghanistan auctioned $17 million on February 27, and $15 million on February 23, as part of the continuous efforts to keep the value of Afghani stable against foreign currencies.

The bank has asked qualified private banks and exchange companies to participate in the auction, which is scheduled to be held on Saturday, March 4. 

According to DAB, the winners of the auction are obliged to liquidate their accounts by the end of the day. As per the announcement, partial settlement of transactions is not allowed and the winners of the auction are obliged to transfer the payable amount to the central bank in cash within a certain time. The exchange rate of one USD is announced to 89 Afghanis as of yesterday, March 2, 2023.

Since the Islamic Emirate took control of the country in August 2021, the value of Afghani has remained relatively stable, which is considered a positive sign for the war-torn country with an economy mostly dependent on foreign aid.

A number of economic experts meanwhile believe that one of the main reasons behind Afghani’s stable value is the inflow of dollars to Afghanistan in the form of international humanitarian aid, which satisfies the demand of the market to some extent.