People’s concern over decline in Afghani currency against US dollar

Following decline of Afghani against US dollar in Afghanistan exchange markets, Afghans by expressing concern over the situation have asked the government to play key role in controlling markets in the country.

In an interview with The Kabul Times correspondent, Haji Mohammad, an Afghan money exchanger, said: “The government of Afghanistan should have principal role in controlling of the country’s markets.”

He added ordinary people of the country would face challenges and economic problems as well as decline in Afghani currency would increase if markets were controlled.

Economic experts also believe that Afghani currency will lose its stability if the situation continues and the Afghani currency continues to fall against US dollar.

They say decline in Afghani currency against US dollar can put negative impact on rate of all foodstuffs in the country; therefore, Da Afghanistan Bank (DAB) should make serious effort to keep the Afghani currency stable as it is the first time the currency has unprecedentedly fallen against US dollar in Afghanistan exchange markets.

Meanwhile, officials for DAB have declared that they would offer $32 million to the market for keeping the Afghani currency stable.

“We offer millions of US dollar to the market to collect the Afghani currency which is too much in the market. Secondly, when currencies rate unprecedentedly change in market of a country, it is central bank that interferes,” General Director of Da Afghanistan Bank (DAB) Khalil Sediq said.

He added that the bank annually offered $3.5 billion to the market and this had happened for the past 17 years to keep the Afghani currency stable in Afghanistan markets.

Khalil Sediq further said that there were many factors that led to the drop of the Afghani against the dollar including hoarding of foreign currencies by a number of profiteers in the country.

He asserted the decline in Iranian and Pakistani currencies, the hike in the USD value and high demand of the USD in the neighboring countries as other reasons behind the soaring of the value of US dollar in Afghanistan.

General Director of the country’s central bank said trade deficit, low domestic production and insecurity in the country also contributed to the decline of the Afghan currency against the US dollar.

The central official said the Iranian Rial and Pakistani rupee had also lost their values against the US dollar, adding that some profiteers in Afghanistan also used the situation as an opportunity for hoarding of foreign currencies.

Khalid Sediq assured that the central bank was capable to fulfill all currency needs of Afghanistan in the country’s markets.

It is worth mentioning that one US dollar was accounted for 76.60 Afghani at Sara-e-Shahzada money exchange market in Kabul, the capital, while currently one US dollar is accounted for 75.20 Afghani.

Shukria Kohistani

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