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Afghani falls to record low amid pressing currency shortage

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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.

 

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New Kabul city project faces delays as officials call for greater oversight

Officials from the Ministry of Urban Development and Housing say infrastructure work is ongoing and expanding.

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Construction of key infrastructure for the New Kabul City project is progressing slowly, raising concerns about delays to one of Afghanistan’s largest urban development initiatives.

The project, designed to accommodate nearly three million residents, was expected to begin distributing residential units during the current solar year. However, officials from the company responsible for implementation say the project has not advanced according to its operational timeline.

Company representatives stated that despite having the necessary financial and technical capacity, several challenges continue to hinder progress. They have called on the leadership of the Islamic Emirate and the Economic Commission to increase oversight and help remove obstacles affecting implementation.

The New Kabul City project was launched three years ago, and under the original plan, around 3,000 housing units were expected to be distributed this year. So far, however, no significant progress has been made toward that goal.

Meanwhile, officials from the Ministry of Urban Development and Housing say infrastructure work is ongoing and expanding. According to the ministry, construction activities, including the Kabul–Bagram road and other essential infrastructure, are underway across four sections of the new city. Authorities aim to complete key infrastructure before moving forward with large-scale residential development.

Economic experts describe the project as crucial for Afghanistan’s long-term economic and social growth. They urge authorities to strengthen supervision and address delays in order to accelerate implementation.

Experts believe that once the project enters its operational phase, it could create thousands of jobs, attract investment, and contribute significantly to national development and urban expansion.

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Etihad Airways to launch twice-daily Kabul flights from July

The expansion marks the second increase in service since the UAE national carrier launched flights to the Afghan capital in March 2026.

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Etihad Airways will increase its flights between Abu Dhabi and Kabul to twice daily from July 15, citing strong demand for travel on the route.

The expansion marks the second increase in service since the UAE national carrier launched flights to the Afghan capital in March 2026.

Etihad initially began operating four flights per week to Kabul, but growing passenger demand has prompted the airline to significantly expand capacity on the route.

“The response to our Kabul launch has been exceptional,” said Arik De, Etihad’s Chief Revenue and Commercial Officer. “Demand has remained strong from day one, and moving to double-daily is a direct reflection of what our guests have been telling us with their bookings.”

The route is operated using Airbus A320 aircraft, configured with eight Business Class seats and 150 Economy Class seats.

The additional flights are expected to provide passengers with greater flexibility and improved connections through Abu Dhabi’s Zayed International Airport to destinations across Europe, the Middle East and other international markets.

The increase also reflects the close links between Afghanistan and the United Arab Emirates, which is home to a large Afghan community and serves as an important hub for business, trade and family travel.

Under the new schedule, Etihad will operate two daily services in each direction.

The first flight, EY312, will depart Abu Dhabi at 9:55 a.m. and arrive in Kabul at 1:25 p.m., with the return flight, EY313, leaving Kabul at 3:10 p.m. and arriving in Abu Dhabi at 6:00 p.m.

The second daily service, EY310, will depart Abu Dhabi at 2:45 p.m. and arrive in Kabul at 6:15 p.m., while EY311 will leave Kabul at 7:20 p.m. and land in Abu Dhabi at 10:10 p.m.

Etihad said the expanded schedule will offer travelers more convenient departure options and strengthen connectivity between Afghanistan and the airline’s global network.

The move also underscores Abu Dhabi’s growing role as a regional aviation hub and highlights increasing demand for air travel between the UAE and Afghanistan.

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ACCI chairman holds talks with U.S. and Russian representatives to boost trade and investment

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The Chairman of the Afghanistan Chamber of Commerce and Investment (ACCI), Sayed Karim Hashemi, held separate meetings with Jeffrey Grieco, Chairman of the Afghanistan-American Joint Chamber of Commerce (AACC), and Dmitry Zhirnov, Russia’s ambassador to Afghanistan, to discuss expanding trade, investment, and economic cooperation.

During his meeting with Grieco at ACCI headquarters, Hashemi emphasized the importance of strengthening economic and commercial ties between the private sectors of Afghanistan and the United States. He called for greater cooperation to connect Afghan businesses with American companies and investors, including Afghan-Americans, and highlighted opportunities for increasing Afghan exports to the U.S. market.

Hashemi also stressed the need for direct engagement between companies, traders, and investors from both countries, as well as cooperation in technology transfer, management expertise, and support for entrepreneurs and small and medium-sized enterprises. He further called for efforts to facilitate the release of Afghanistan’s frozen assets, describing them as belonging to the Afghan people.

Grieco reaffirmed the Afghanistan-American Joint Chamber of Commerce’s commitment to working closely with ACCI and noted that several American companies have expressed interest in investing in Afghanistan’s mining sector. He also invited Hashemi to meet a large delegation of American traders and investors expected to attend an upcoming economic event in Uzbekistan, where Afghanistan’s investment opportunities could be presented.

In a separate meeting, Hashemi met with Russian Ambassador Dmitry Zhirnov and discussed ways to strengthen trade and investment relations between Afghanistan and Russia. The discussions focused on expanding commercial ties, exchanging trade delegations, attracting joint investments, and creating stronger links between the private sectors of the two countries.

Hashemi called for the deployment of Russian specialists to assist Afghanistan’s private sector and support the transfer of technical knowledge and industrial expertise. He also proposed enhancing cooperation between the chambers of commerce of both countries and exchanging lists of active traders, investors, and companies to develop practical market-driven initiatives for economic cooperation.

For his part, Ambassador Zhirnov said trade between Afghanistan and Russia had shown positive growth over the past year but remained below its full potential. He stressed the need for greater efforts to increase bilateral trade and promote practical economic cooperation.

The Russian envoy also pledged to support ACCI’s efforts at international conferences and forums by promoting Afghanistan’s investment opportunities and major economic projects to Russian businesses and investors. He emphasized that stronger ties between the private sectors of the two countries would play a key role in expanding broader economic relations between Afghanistan and Russia.

The meetings reflect ACCI’s ongoing efforts to attract foreign investment, expand international trade partnerships, and strengthen Afghanistan’s economic engagement with both regional and global partners.

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