The Afghani, Afghanistan’s currency, became the world’s fastest-growing currency in the third quarter. In three months it has strengthened by about 9%, outperforming the Colombian peso by 3%. reported Bloomberg. Since the beginning of the year, the Afghani (AFN) exchange rate against the US dollar has increased by about 14%. In terms of the rate of strengthening, the Afghan currency took third place in the world after the currencies of Colombia and Sri Lanka.
Increased trade, exchange controls, cash inflows and other remittances contributed to the strengthening of the Afghani. In addition, Afghanistan introduced a ban on the use of US dollars and Pakistani rupees for payments in the country, and strengthened restrictions on the export of US dollars outside the country.
In Afghanistan, foreign currency is now traded mainly through exchange offices. Due to financial sanctions, almost all remittances now go to Afghanistan through the Hawala money transfer system, which operates in many regions, including the Middle East.
“Tightening restrictions on foreign exchange transactions and a gradual improvement in the trade situation are supporting growth in demand for afghanis,” said Anvita Basu, head of country risk for Europe at BMI. According to her, the Afghan exchange rate is likely to stabilize at the current level by the end of the year.
The World Bank forecasts that Afghanistan’s economy will stop contracting this year and will grow by 2-3% through 2025. Chinese, British and Turkish companies signed $6.5 billion in contracts this month to build large iron and gold mines in the country. In January, the Afghan government entered into a contract with China’s Xinjiang Central Asia Petroleum and Gas to produce oil in the Amu Darya River basin in the north of the country.
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2023-09-26 15:32:33
