Afghanistan Currency Afghani Becomes World's Best-Performing Currency in Current Quarter Despite International Sanctions: Report
Despite this progress, Afghanistan remains a poor country with one of the worst human rights records in the world. In spite of a 14 per cent gain in value over the year, the Afghani ranks third on the worldwide list, following only the currencies of Colombia and Sri Lanka.
Mumbai, September 26: According to Bloomberg statistics, the currency of Taliban-controlled Afghanistan has been the best-performing currency in the world this quarter. The Afghani has gained in value by 9 per cent over this time, owing mostly to the infusion of billions of dollars in humanitarian relief and increasing commerce with Asian surrounding nations, according to the outlet. Since assuming power two years ago, the Taliban have taken many steps to keep a solid grip over its currency.
These steps include restricting the usage of US Dollars and Pakistani Rupees in local transactions and tightening restrictions on exporting US cash. According to Bloomberg, they have even criminalised the internet trade, threatening imprisonment for individuals who break the laws with incarceration. PKR Ban in Afghanistan: Central Bank of Afghan to Ban Use of Pakistani Currency Soon.
Despite this progress, Afghanistan remains a poor country with one of the worst human rights records in the world. In spite of a 14 per cent gain in value over the year, the Afghani ranks third on the worldwide list, following only the currencies of Colombia and Sri Lanka. Due to international sanctions, Afghanistan is essentially cut off from the global financial system. According to a World Bank analysis, the situation is terrible, with high unemployment, two-thirds of households unable to buy basic needs, and inflation giving way to deflation.
To relieve some of the economic challenges, the UN has begun delivering regular planeloads of US money, reaching up to $40 million, to help the needy for at least 18 months, beginning at the end of 2021. Afghanistan Crisis: Afghan Central Bank Urges People To Use Local Currency in Transactions.
Meanwhile, money changers known as 'Sarraf', who set up booths in marketplaces or operate out of establishments in towns and villages, are currently the major way of converting foreign cash in Afghanistan. Tens of millions of dollars are traded daily at Kabul's bustling open-air market, Sarai Shahzada, which serves as the country's de facto financial centre. There are no trading restrictions, as announced by the central bank.
(The above story first appeared on LatestLY on Sep 26, 2023 06:08 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).