• Email to a friend Email to a friend
  • Print version Print version
  • Plain text Plain text

Tagged as:

No tags for this article

Rate this article

Home | Opinions | Economic | US dollar climbing vs. Afghani currency concerning

US dollar climbing vs. Afghani currency concerning

Font size: Decrease font Enlarge font
US dollar climbing vs. Afghani currency concerning
Wahidullah Noshehr, the first deputy to Da Afghanistan Bank in an interview with The Kabul Times said the main aim of the bank is to keep the foreign currencies’ rate unchanged. Trade deficiency is a big challenge in Afghanistan, he said, adding if we take a look to figures, we would see 5.1 billion of USD trade deficiency.  There are difference between out import and exports, as our exports are less them imports—a move which is not a short-term challenge but would take long to be solved, he went on to say.
The reason behind this related to the government expenditures as the ministry of finance has recently declared that it had spent 67% of its development budget. When such an amount is spent, a huge amount of money would add in tax which would pressure Afghani currency. 
Likewise, when the Iranian and Pakistani currencies have lost value in world market, some people tried to change their monies into US dollar—an action caused to rise US dollar price against Afghani. 
Another reason is that four currencies are running in Afghanistan, Pakistan, Iran, US and Afghani currencies which faced Da Afghanistan Bank with a big challenge. 
In 1396, Da Afghanistan Bank had sold $1947mln, Noshehr said.  On keeping the currencies rates unchanged, he said not only Da Afghanistan Bank but all banks throughout the country have always made efforts to control the currencies’ fluctuations. 
Currently, there are 15 banks operational in the country, 3 of which are state-run, three are foreign banks and the rest are the domestic banks and one of the responsibilities of Da Afghanistan Bank is to control all of them.
Unfortunately, over the last years, investment in the country has faced strong challenges, amid growing insecurities and political instabilities—a move heavily affected Afghani currency.
Investors, because of disappointment over poor security and more possibly failure for a positive turnover, are not now sure to remain investing in Afghanistan and most importantly, they have ignored to resist investing under harsh status quo.  As any country’s currency is the incredible bankroll of its products, because each item from domestic products could be dealt at each currency, through which the flight of currency can be prevented. But, Afghanistan, at the biggest level, lacked domestic products, which had affected its currency.
Unsureness towards a stable future has accelerated the Afghani currency, because US dollar has been counted on, as the core mean of caution and hoarding, exchange and business, and the high ranking officials receiving super skill salaries, while the low-ranking employees with low wage are dealing difficultly with their lives. Some people are hoarding up dollars for their future difficult days, while the staffs of other private institutions are receiving salaries in dollars, something can critically affect Afghani rate and accelerate poverty and economic crisis and badly worsened the people’s situation.


Subscribe to comments feed Comments (1 posted)

Another reason is that four currencies are running in Afghanistan, Pakistan, Iran, US and Afghani currencies which faced Da Afghanistan Bank with a big challenge.
total: 1 | displaying: 1 - 1

Post your comment

  • Bold
  • Italic
  • Underline
  • Quote

Please enter the code you see in the image: