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Record devaluation of Afghan currency amid economic woes

Record devaluation of Afghan currency amid economic woes

Kabul, Dec 14 (SocialNews.XYZ) Amid the ongoing humanitarian crisis in Afghanistan, the national currency, the afghani, has recorded an alarming drop against the US dollar leading to a sharp increase in the prices essential items like food and fuel.

The afghanitraded at 112.60 for one US dollar on Monday, according to figures provided by Da Afghanistan Bank, the country's national bank.

 

On Sunday, the exchange rate was 106.12 while the rate was 103.66 a day before, a continued record devaluation, reports Xinhua news agency.

At the beginning of 2020, the afghani had traded at some 76 for one dollar, and at 77 in this January, 81 in July and 90 in mid-August.

After the Taliban's takeover in August, the Afghan economy has suffered from the US freezing of over $9 billion in assets belonging to the Afghan central bank, and a halt in funds by the World Bank and the International Monetary Fund.

According to economists and banking analysts, this is the most that the Afghani has lost value against a foreign currency in recent times, TOLO News reports.

They said currently inflation has reached to 12 to 14 per cent, and the persistence of this situation will destabilise the economy of the country.

According to them, this situation can damage small and medium investments in the country and will halt business activity.

Shopkeepers said some wholesalers on Monday closed their markets as the news about the rapid increase of the dollar value spread throughout the city.

Source: IANS

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Record devaluation of Afghan currency amid economic woes

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