The World Food Organization said in a report that the stability of the Afghan currency began to take hold between January and March 2022 when UN cash shipments began, and the de facto authorities exerted strong controls on the illegal export of foreign currency, strengthening the afghani.
“AFN against foreign currencies can be seen as a positive development for the economy, as it can help to stabilize prices and improve household purchasing power,” the report said.
This comes as the Central Bank said that increase in exports, resumption of infrastructural projects and implementation of monetary policy are the main reasons for the stability of the Afghani currency.
“Implementation of some national and international stories, export development, prevention of extra expenses in government affairs, transparency and implementation of monetary policies caused stability of Afghani currency against foreign currencies,” said Hassibullah Noori, the Central Bank’s spokesman.
Meanwhile, the Union of Sarai Shahzada Money Exchangers suggested that the Central Bank deliver dollars in cash packages to the market occasionally to maintain the stability of the Afghan currency.
A spokesman for the union of money exchangers, Abdul Rahman Zirak, also called for the prevention of the use of foreign currencies in the country’s market.
“We want the Central Bank to deliver dollars repeatedly to the market, which has its benefit on the value of the Afghani currency,” Zirak said.
On Wednesday, one dollar was exchanged for 87 Afs in Kabul markets.
Economists believe that the stability of the Afghan currency against the US dollar can be beneficial for prices of food materials.
“The decrease of dollar value and ... stability of Afghani currency has had a positive impact on the reduction of prices of commodities being imported,” said Seyar Qureshi, an economist.
The Central Bank said earlier that Afghanistan has been placed among 9 countries whose currency has been stabilized.