Afghanistan’s Currency Beats US Dollar, Becomes World’s Best Performer This Quarter

New Delhi: While developed countries are threatened by recession, in a surprising scenario Taliban-ruled Afghanisthan’s currency became the best performer in the September quarter.
As per the Bloomberg report, the receipt of billions of dollars from humanitarian aid and rising trade with Asian neighbours has propelled Afghanistan’s currency to the top of global rankings this quarter. This is an unusual spot for a poverty-stricken country with one of the world’s worst human rights records.

The ruling Taliban, which seized power two years ago, has also unleashed a series of measures to keep the Afghani in a stronghold, including banning the use of dollars and Pakistani rupees in local transactions and tightening restrictions on bringing greenbacks outside the country. It has made online trading illegal and threatened those who violate the rules with imprisonment.

Over this period, the Afghani has surged by 9 per cent in value, attributed primarily to a significant influx of humanitarian aid and a boost in trade activities with neighbouring Asian countries.

Despite this currency success, Afghanistan remains a nation grappling with pervasive poverty and a dire human rights record on the global stage. While Afghani has recorded a 14 per cent gain in value over the past year, it currently holds the third position on the global currency performance list, trailing behind the currencies of Colombia and Sri Lanka.

The United Nations estimates that Afghanistan requires approximately $3.2 billion in assistance for this year, yet only $1.1 billion has been provided, according to the financial tracking agency of the international organization.

Last year, the United Nations expended approximately $4 billion in response to the critical hunger threat faced by 41 million people in Afghanistan.

 

 

Comments are closed.