The Afghan Currency Rises to the Top of Global Rankings
Bloomberg Reports Billions of Dollars in Humanitarian Aid and Increased Trade
Bloomberg reported that billions of dollars in humanitarian aid and increased trade with Asian neighbors propelled the Afghan currency to the top of global rankings this quarter.
The Taliban Implements Measures to Maintain Control
The ruling Taliban, which seized power two years ago, have also taken a number of measures to maintain control of the Afghan currency, including a ban on the use of the US dollar and Pakistani rupee in local transactions and tightening restrictions on the exit of US currencies from the country. He also declared online trading illegal and threatened those who break the rules with jail time.
Controls Over Currency and Cash Flows Drive Afghan Dollar Rise
Controls over the currency, cash flows, and other financial transfers helped the Afghan dollar rise about 9% this quarter, outpacing the Colombian peso’s 3% rise, according to data compiled by Bloomberg.
Afghan Currency Value Rises 14% This Year
The value of the Afghan currency has risen about 14% this year, placing it third on the global list behind the currencies of Colombia and Sri Lanka.
Economic Growth Expected Despite Risks
The World Bank expected the economy to stop contracting this year, posting growth of 2-3% through 2025, although it warned of risks such as cuts in global aid as the Taliban intensifies its repression of women.