AFGHAN CENTRAL BANK TO AUCTION OFF $10 MILLION IN BID TO STABILIZE AFN IN FACE OF FINANCIAL SANCTIONS

Tue 16 November 2021:

The Central Bank of Afghanistan (Da Afghanistan Bank) stated on Monday that it will auction off roughly $10 million this week in an effort to assist stabilize the Afghan currency.

Commercial banks, money exchangers, and firms that provide money services have been invited to the auction on Tuesday, according to Da Afghanistan Bank (DAB).

The news comes just one day after the Afghani lost significant ground against the US dollar, falling to its lowest level since 2003, when new Afghani banknotes were issued.

Earlier this week, Human Rights Watch called for easing financial sanctions on Afghanistan. It urged the UN and international financial institutions to adjust existing restrictions and sanctions affecting the country’s economy and banking sector.

“Afghanistan’s economy and social services are collapsing, with Afghans throughout the country already suffering acute malnutrition,” said John Sifton, Asia advocacy director at Human Rights Watch.

“Unfortunately, one US dollar cost 95 AFN yesterday. But today it reached 92 AFN again. This is an issue on the markets. The shortage of US dollars in Afghan markets is the main reason for the sharp drop in value,” said Abdul Rahman Zirak, a spokesman for Afghan’s biggest currency market Sarai Shahzada.

Zirak added that US dollars are being smuggled to neighboring countries which has also led to a shortage of dollars in Afghanistan.

“Unfortunately, nowadays millions of dollars are being smuggled to Pakistan and Iran so that they could sell at a higher price for greater profit. For instance, people sell dollars at a higher price and buy Pakistani rupees at a lower price and then transfer them to Afghanistan,” Zirak noted.

Afghanistan has for years been heavily reliant on the US dollar which is widely used in the country.

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