SHAFAQNA- Billions of dollars in humanitarian aid and increasing trade with Asian neighbors have catapulted Afghanistan’s currency to the top of the world rankings this quarter – an unusual placement for a poor country with one of the world’s most profitable currencies and the worst human rights record.
According to Bloomberg, the ruling Taliban, which came to power two years ago, have also introduced a series of measures to keep Afghans in their stronghold, including banning the use of the Pakistani dollar and rupee in local transactions and increasing Strengthen restrictions on import of greenbacks abroad. It considers online trading illegal and threatens jail for those who break the rules.
Exchange controls, inflows and other remittances helped the Afghani rise about 9% this quarter, outpacing the Colombian peso’s 3% gain, according to data compiled by Bloomberg. The Afghani has increased about 14% in the past year, ranking third in the world, behind the currencies of Colombia and Sri Lanka.
However, the reduction in currency losses after the regime change also contrasts with the sharp fluctuations that persist on the ground, with Afghanistan largely cut off from the global financial system due to sanctions.
A World Bank report says unemployment is widespread, two-thirds of households are struggling to afford essentials and inflation has turned into deflation. Planes loaded with USA’s dollars have been arriving almost weekly from the United Nations to support the poor, in some places up to $40 million, for at least 18 months since the end of 2021.
Read full text of this news in Bloomberg.
Source: Bloomberg