Dollar Smuggling
Concerns have arisen among investors and businessmen in Afghanistan as the Afghani currency falls due to a crackdown on dollar smuggling in Pakistan.
Over the past five days, one US dollar has appreciated to 81 Afghani, down from last month’s rate of 88 Afghani to 72 Afghani, as reported by Afghanistan’s Tolo News.
Additionally, the Afghani has depreciated against the Pakistani rupee, with one Afghani equating to Rs4.19 until September 5.
While Tolo News did not mention the crackdown on dollar smuggling in Pakistan, the Union of Money Exchangers of Sarai Shahzada attributed the currency fluctuations to the ban on the use of Pakistani rupees in the eastern parts of Afghanistan.
Abdul Rahman Zerak, a spokesman for the Union of Money Exchangers of Sarai Shahzada, encouraged people not to mishandle their Afghan currency, asserting that the Afghani had maintained its stability well.
Efforts to stabilize the Afghani against foreign currencies were being coordinated by the central bank, according to the Chamber of Commerce and Investment.
Khan Mohammad Sarfraz, an official from the Chamber of Commerce and Investment, emphasized that fluctuations in any currency negatively impact trade.
Some experts speculated that large-scale money exchange investors in Pakistan, Iran, and Afghanistan might be manipulating exchange rates for greater profits. They suggested that these fluctuations were a means for bigger money changers to benefit at the expense of smaller ones.
Economist Sayed Masoud remarked, “[They are] emptying the pockets of small and medium money changers by taking money from them and then gradually increasing the value of the dollar.”
Given the current situation, the public has called on municipalities to manage grocery prices. To maintain stability, the Central Bank of Afghanistan conducted a $16 million US dollar auction on Tuesday.
