Connect with us

Business

Afghani falls to record low amid pressing currency shortage

Published

on

Economists are warning of an acute currency shortage in Afghanistan and the subsequent economic predicament as the Afghani has plummeted to its record low in trading.

The United Nations Development Programme (UNDP) issued a report earlier this week urging prompt actions to prevent the Afghan banking system from collapsing, which is now “in disarray” featuring inadequate liquidity and decreased deposits.

The largest currency exchange market in Kabul now has been crowded with people and the Afghani has dropped to its all-time low.

Before the Islamic Emirate of Afghanistan (IEA)’s takeover of Kabul in mid-August, one U.S. dollar was equal to about 70 Afghanis. But now the exchange rate hovers around 90 Afghanis to the dollar. The continued depreciation of the Afghan currency sparked fears among residents, with many flocking to the exchange market.

“Unfortunately in these two weeks the Afghan currency has been dropping down against foreign currencies with one dollar costing 95.5 Afghanis last week. Then the Afghanistan Bank released a statement that they will put 10 million U.S. dollars into the market, more than the 2.5 million dollars they actually took out. However, the price [of the U.S. dollar] didn’t go down but unfortunately have increased day by day,” said Zirak, spokesman from the all money dealers of Afghanistan.

Zirak said the country’s currency shortage was fueled by the combination of its assets frozen by the United States, the increasing domestic demand for U.S. dollars, as well as banks’ restrictions on dollar withdrawal.

The UNDP report noticed that non-performing loans in Afghanistan had increased from around 30 percent at the end of 2020 to 57 percent in September this year.

With the current trend and withdrawal restrictions, approximately 40 percent of the country’s deposit base will be lost by the end of 2021, said the report.

The currency shortage also comes along with rising prices. Some residents and businessmen in Kabul said that the prices of major commodities, such as food and fuel, have almost doubled compared with last year.

A Kabul resident is calling for the U.S. to release the frozen assets to save people’s lives.

“The U.S. blocked the money of Afghanistan, leading to the economic downturn. The poverty rate has reached its peak and people will die, so we urge the U.S. to release money of Afghanistan because [if not,] sure the people will die,” said Mustafa Bahram.

 

Business

Pakistan allows re-export of stranded Afghan transit cargo

The suspension of Afghan Transit Trade operations left thousands of containers stuck, causing heavy financial losses for Afghan traders and disrupting regional commerce.

Published

on

Pakistan’s Federal Board of Revenue (FBR) has allowed the re-export of Afghan transit trade consignments that had been stranded for months at Chaman and Quetta, enabling their movement to Karachi Port and Port Qasim.

The shipments were halted after crossings between Afghanistan and Pakistan were closed in October 2025 amid escalating security tensions.

The suspension of Afghan Transit Trade operations left thousands of containers stuck, causing heavy financial losses for Afghan traders and disrupting regional commerce.

Under the new directive, stranded goods will be transported under customs supervision to Karachi for re-export. Pakistani authorities said the process will follow strict monitoring and inspection procedures to ensure compliance with transit regulations.

The decision offers limited relief to Afghan businesses affected by the prolonged disruption, though regular trade between the two countries has yet to resume.

Continue Reading

Business

Afghanistan’s 2026 Development Framework meeting highlights self-reliance and economic stability

The Ministry said these measures helped preserve relative economic stability and deliver stronger economic growth compared with the previous year.

Published

on

The Ministry of Economy of Afghanistan says a coordination meeting on the United Nations’ 2026 Development Framework for Afghanistan was held under the chairmanship of Qari Din Mohammad Hanif, Minister of Economy, focusing on advancing national development priorities and long-term economic stability.

The meeting was attended by representatives from the Ministry of Foreign Affairs, the United Nations Assistance Mission in Afghanistan (UNAMA), heads of UN agencies operating in the country, delegates from the European Union, and a range of international organizations.

During the session, the Minister of Economy outlined Afghanistan’s current situation, recent achievements, and key economic priorities, while expressing appreciation for the continued support of international partners during challenging years.

According to the Ministry, Afghanistan faced severe economic, social, and climate-related pressures in 2025.

These included the impacts of climate change and natural disasters, the forced return of more than two million Afghan migrants from neighboring countries, ongoing sanctions, frozen foreign reserves, and a sharp decline in development and humanitarian assistance. Together, these factors have significantly affected the livelihoods of vulnerable communities.

Despite these challenges, the Islamic Emirate has implemented a series of economic and development programs centered on prudent policymaking and national priorities.

The Ministry said these measures helped preserve relative economic stability and deliver stronger economic growth compared with the previous year.

Improved economic governance, support for domestic production and the private sector, exchange rate stability, export growth, national infrastructure projects, inflation control, and increased domestic revenues were cited as key contributors.

The Ministry also highlighted the role of the United Nations in addressing urgent humanitarian needs, noting that UN assistance has been critical in responding to climate impacts, supporting migrants and returnees, strengthening food security and livelihoods, delivering basic health services, and reducing overall human suffering.

Data from the Ministry of Economy show that around $1.009 billion in international assistance was allocated to Afghanistan in 2025 across various sectors, with approximately $590 million earmarked for project expenditures. However, figures from the UN Office for the Coordination of Humanitarian Affairs indicate a significant drop in humanitarian funding, with only 36 percent of the $2.4 billion required having been secured.

The Ministry emphasized that sustainable economic stability can only be achieved through self-reliance, growth-driven economic policies, and constructive engagement with the international community.

Afghanistan’s Development Strategy, a long-term framework developed under the leadership of the Economic Deputy of the Prime Minister and coordinated by the Ministry of Economy, aims to promote balanced development, job creation, poverty reduction, infrastructure expansion, private sector support, and environmental protection.

Continue Reading

Business

Afghan delegation visits Belarus to strengthen economic and industrial ties

The delegation also visited major state and industrial enterprises, including, the State Chemical Service, and agricultural farms under the Ministry of Agriculture.

Published

on

A high-level delegation from the Islamic Emirate of Afghanistan, led by Ahmad Jan Balal, head of the Emirati Companies, and Abdul Rahman Atash, CEO of the National Development Company, accompanied by representatives from the Ministry of Foreign Affairs and technical teams, visited Belarus to advance bilateral cooperation.

According to Nabiullah Arghandiwal, spokesperson for the National Development Company, the Afghan delegation held meetings with officials from Belarus’ Ministries of Foreign Affairs, Agriculture, and Industry to discuss political, economic, and trade-related issues.

The delegation also visited major state and industrial enterprises, including, the State Chemical Service, and agricultural farms under the Ministry of Agriculture.

Arghandiwal added that both sides agreed to strengthen and expand technical collaboration in the fields of industry, agricultural machinery, construction materials, food safety, public health, and education, aiming to enhance long-term economic and industrial partnerships between the two nations.

give me english hashtags with coma in between the words

Continue Reading
Advertisement
Advertisement
Advertisement
Advertisement

Trending

Copyright © 2025 Ariana News. All rights reserved!