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Central bank to auction off $10 million in bid to stabilize AFN

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Afghanistan’s Central Bank (Da Afghanistan Bank) announced Monday that it would auction off around $10 million this week, in a bid to help bring some stability to the Afghan currency.

Da Afghanistan Bank (DAB) called on commercial banks, money exchangers, and companies that provide money services to attend the auction on Tuesday.

The development comes a day after the Afghani lost significant value against the US dollar, dropping to its weakest since 2003 when new Afghani banknotes were printed.

On Monday, the AFN had strengthened slightly as one US dollar cost 92.95 AFN compared to 95 AFN on Sunday.

“Unfortunately, one US dollar cost 95 AFN yesterday. But today it reached 92 AFN again. This is an issue on the markets. The shortage of US dollars in Afghan markets is the main reason for the sharp drop in value,” said Abdul Rahman Zirak, a spokesman for Afghan’s biggest currency market Sarai Shahzada.

Zirak added that US dollars are being smuggled to neighboring countries which has also led to a shortage of dollars in Afghanistan.

“Unfortunately, nowadays millions of dollars are being smuggled to Pakistan and Iran so that they could sell at a higher price for greater profit. For instance, people sell dollars at a higher price and buy Pakistani rupees at a lower price and then transfer them to Afghanistan,” Zirak noted.

Afghanistan has for years been heavily reliant on the US dollar which is widely used in the country.

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Afghanistan and Shanghai Chambers sign trade and investment cooperation agreement

The Shanghai Chamber of Commerce welcomed the Afghan delegation and stressed the importance of expanding practical and long-term economic cooperation between the two sides.

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The Afghanistan Chamber of Commerce and Investment (ACCI) has announced that a high-level delegation led by Sayed Karim Hashimi held talks with the Shanghai Chamber of Commerce and Industry and Chinese investors in Shanghai.

During the meeting, Hashimi described Shanghai as one of the world’s leading economic and investment hubs, emphasizing Afghanistan’s strategic location in the heart of Asia as a key bridge between Central and East Asia.

He highlighted China’s Belt and Road Initiative as a major opportunity for regional economic cooperation and reaffirmed Afghanistan’s readiness to actively participate in the framework.

Hashimi also said Afghanistan’s private sector is prepared to expand cooperation with Chinese investors in mining, agriculture, industry, transit, logistics, technology, manufacturing, carpets, precious stones, medical products, and banking sectors.

The Shanghai Chamber of Commerce welcomed the Afghan delegation and stressed the importance of expanding practical and long-term economic cooperation between the two sides.

At the end of the meeting, a cooperation agreement on trade and investment was officially signed between the two chambers.

The delegation also included senior members of provincial chambers and leading Afghan business figures.

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CASA-1000 power project on track to launch in 2027

Once operational, CASA-1000 is expected to strengthen regional energy security, support economic integration, and expand electricity trade across Central and South Asia.

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The long-delayed CASA-1000 energy project is expected to begin commercial operations in summer 2027, with construction in Afghanistan due for completion earlier that year, officials said.

Progress on the power project was reviewed during meetings in Dushanbe between April 18 and 20, involving Tajik authorities, Afghanistan’s state power utility Da Afghanistan Breshna Sherkat, the World Bank, and engineering firm KAMANI Engineering Corporation.

Tajik Energy Minister Daler Juma said the project is key to boosting regional cooperation and enabling the export of surplus hydropower from Central Asia to energy-deficient markets in South Asia.

Construction has already been completed in Kyrgyzstan, Tajikistan and Pakistan, while work continues in Afghanistan. According to officials, the Afghan segment is on track to be finalized by spring 2027, paving the way for full project operations later that summer.

Once operational, CASA-1000 is expected to strengthen regional energy security, support economic integration, and expand electricity trade across Central and South Asia.

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Afghanistan, Uzbekistan and Kyrgyzstan agree on framework to boost trade and transit

Officials said the talks focused on easing the movement of goods, particularly Afghan export products destined for Uzbekistan and Kyrgyzstan.

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Afghanistan, Uzbekistan and Kyrgyzstan have agreed to strengthen regional trade and transit cooperation following a high-level trilateral meeting held in Tashkent on the sidelines of the INNOPROM Central Asia expo.

Afghanistan’s Minister of Industry and Commerce Nuruddin Azizi met with Laziz Kudratov, Uzbekistan’s Minister of Investment, Industry and Trade, and Sanzhar Iskenderovich Asylkulov, Deputy Minister of Economy and Commerce of Kyrgyzstan, to discuss measures aimed at facilitating transit procedures, increasing trade volumes and expanding Afghan exports to Central Asian markets.

Officials said the talks focused on easing the movement of goods, particularly Afghan export products destined for Uzbekistan and Kyrgyzstan.

At the conclusion of the meeting, the three sides agreed to establish a joint working group to oversee implementation of the proposed initiatives. They also reached agreement on Afghanistan’s membership in the exhibition platform.

The event brings together participants from across Central Asia, as well as Russia and Belarus, providing a platform for industrial cooperation and investment.

Officials say Afghanistan’s participation is expected to open new opportunities for local industries to showcase products and strengthen their presence in regional markets, while the agreement marks a step toward deeper economic integration and improved regional connectivity.

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