KABUL: The World Food Organization (WFO) has said that the stability of the Afghan currency began to take hold between January and March during the last year when the United Nations cash shipments started, and the Interim Afghan officials exerted controls on the unlawful export of foreign currency, strengthening the local currency, local media reported on Wednesday.
Afghan currency gains value against US dollar
The WFO report said, “Afghan currency against foreign currencies can be seen as a positive indicator for the economy of Afghanistan, as it can support to bring stability in prices and enhance household buying power,”.
The development comes as the Central Bank of Afghanistan claimed that surge in exports, restoration of infrastructural projects and execution of monetary policy are the main causes for the stability of local currency.
“Execution of some local and global stories, export development, stoppage of extra expenses in government sector, transparency and execution of monetary policies caused stability of local currency against foreign currencies in Afghanistan,” said the Central Bank’s spokesman Hassibullah Noori.
However, the Union of Sarai Shahzada Money Exchangers recommended that the Central Bank of Afghanistan deliver dollars in cash packages to the market infrequently to maintain the stability of the currency in Afghanistan.
One US dollar was exchanged for 87 Afghani in Kabul markets on Wednesday.
Experts say that the stability of the local currency against the US dollar can be positive for prices of food products.
The Central Bank of Afghanistan said earlier that the country has been placed among nine nations whose currency has been stabilized.
