Bloomberg has reported a remarkable development regarding the Afghan national currency, highlighting its ascent to one of the top three strongest currencies globally. According to Bloomberg's data, the Afghan currency has experienced a notable surge in strength, with a 9% appreciation over the past three months and an overall increase of nearly 14% by year-end. This performance places it second only to the currencies of Colombia and Sri Lanka in terms of growth.
Several factors have contributed to the remarkable strengthening of the Afghan currency. One significant driver has been the imposition of strict exchange controls by Afghan authorities, restricting the use of foreign currencies, including the U.S. dollar and Pakistani rupees, in transactions within the country. These controls have also extended to prohibiting online currency trading, with violations carrying the threat of imprisonment. This stringent approach appears to have played a pivotal role in bolstering the national currency's value.
Additionally, Afghanistan has experienced an influx of cash and remittances, further underpinning the currency's rise. Humanitarian aid and increased trade with Asian countries have been instrumental in this regard. These inflows of funds have likely contributed to a strengthening of the Afghan economy and have created greater demand for the local currency.
However, experts and analysts caution that this surge in the Afghan currency's value may be temporary. The current economic, social, and political instability in Afghanistan raises questions about the long-term sustainability of this trend. While the strict currency restrictions have yielded short-term benefits, it remains uncertain how these measures will impact the broader economic landscape and the livelihoods of Afghan citizens in the coming months and years.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)