Afghanistan’s Central Bank to auction $16m to support local currency

KABUL: The Central Bank of Afghanistan will carry out action of $16 million on Tuesday (today), as the relative value of the American dollar has risen in the local market.

In an announcement posted on its social media account, X, the Central Bank of Afghanistan disclosed that the 16 million US dollar would be made available in the market for currency exchange.

The Central Bank of Afghanistan has invited eligible banks, money exchangers, and financial services providers to participate in the auction, with winning bidders required to settle their accounts by the conclusion of the exchange period.

Dollar’s decline in Afghanistan is steeper than its rise in Pakistan

This development follows a recent decline in the value of the US dollar against the Afghan currency, as highlighted in the report by Khaama Press.

The Central Bank of Afghanistan has previously injected significant sums of money into the foreign exchange market to maintain stability and safeguard the value of the Afghan currency.

In Afghanistan’s markets, one US dollar is presently trading for more than 80 Afghanis.

A recent report by the World Bank also noted the stability of the Afghan currency in relation to foreign currencies.

Additionally, the cash aid package provided by the United States has played a role in maintaining Afghanistan’s currency stability, as reported by Khaama Press.