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Foreign Currency Use Increases as Afghani Value Drops

Amid the escalation in fighting and growing insecurity in the country, fluctuations of the Afghani against foreign currencies is leading to the increased use of those currencies.

Sources told TOLOnews that in recent months most people opening bank accounts have been trying to open dollar accounts instead of Afghani accounts. 

According to sources, in the last six months 70% of all bank accounts in the country have been changed from Afghani accounts into foreign currency accounts, especially into dollars. 

Sayed Masoud, a university lecturer, said: “It (the value of Afghani) will reduce day-by-day, it may reduce more in the coming days, and foreign currencies like the pound, euro, dollar, and Kaldar will enter the market.” 

Afghanistan's Central Bank announced efforts to promote the use of Afghani currency in markets, but several banking experts criticized the central bank's policies, saying that in the past 20 years the bank has not been able to promote the national currency in all parts of the country. 

The experts added that along with the struggling economy, unemployment, insecurity, and inefficient policies of the Central Bank to promote the Afghan currency and regulate the foreign exchange market have decreased trust in the Afghani.

Siyar Quraishi, a banking expert in London, said: “Considering what they would buy and how much they would buy with their income, middle-class families will be impacted more by the reduction of the Afghani currency.” 

Hasibullah, a communications official at the Central Bank, stated: “Recently the Afghani value against the US dollar has slightly fluctuated, and this is not due to economic factors, it is due to the impact of the current political and security situation in the country.” 

Foreign Currency Use Increases as Afghani Value Drops

Sources told TOLOnews that in recent months most people opening bank accounts have been trying to open dollar accounts instead of Afghani accounts. 

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Amid the escalation in fighting and growing insecurity in the country, fluctuations of the Afghani against foreign currencies is leading to the increased use of those currencies.

Sources told TOLOnews that in recent months most people opening bank accounts have been trying to open dollar accounts instead of Afghani accounts. 

According to sources, in the last six months 70% of all bank accounts in the country have been changed from Afghani accounts into foreign currency accounts, especially into dollars. 

Sayed Masoud, a university lecturer, said: “It (the value of Afghani) will reduce day-by-day, it may reduce more in the coming days, and foreign currencies like the pound, euro, dollar, and Kaldar will enter the market.” 

Afghanistan's Central Bank announced efforts to promote the use of Afghani currency in markets, but several banking experts criticized the central bank's policies, saying that in the past 20 years the bank has not been able to promote the national currency in all parts of the country. 

The experts added that along with the struggling economy, unemployment, insecurity, and inefficient policies of the Central Bank to promote the Afghan currency and regulate the foreign exchange market have decreased trust in the Afghani.

Siyar Quraishi, a banking expert in London, said: “Considering what they would buy and how much they would buy with their income, middle-class families will be impacted more by the reduction of the Afghani currency.” 

Hasibullah, a communications official at the Central Bank, stated: “Recently the Afghani value against the US dollar has slightly fluctuated, and this is not due to economic factors, it is due to the impact of the current political and security situation in the country.” 

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