Foreign Currency Use Increases As Afghani Value Drops

Date: Jul 26, 2021, 10:46

In recent months, most people who open bank accounts have tried to open dollar accounts instead of Afghanis, some sources said.

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.

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.

 



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