Afghanistan Times
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KABUL – The Central Bank of Afghanistan, operating under Taliban administration, has announced plans to auction $27 million in an effort to stabilize the Afghan currency amid a sharp rise in the value of the U.S. dollar.
In a press release on Tuesday, January 28, the bank stated that the auction would be held on Wednesday, inviting private banks and financial institutions to participate in the bidding process. This comes as part of a series of interventions aimed at curbing the escalating exchange rate.
Just three days earlier, the Central Bank auctioned $20 million, signaling an ongoing effort to control the dollar’s growing dominance in local markets. Currently, the U.S. dollar is being exchanged for 79 to 80 Afghanis, a significant increase that has raised concerns over the stability of Afghanistan’s fragile economy.
The rise in the dollar’s value coincides with recent developments in U.S. foreign policy. President Donald Trump, who was recently inaugurated, has signed an executive order temporarily suspending all U.S. foreign aid programs for 90 days to reassess their alignment with U.S. national interests. This decision is believed to have indirectly impacted Afghanistan’s economy, which has long relied on international aid.
In response to the surging dollar rates, the Taliban has banned dollar-to-Afghani transactions at Shahzada Market, Kabul’s primary currency exchange hub.
Economic experts warn that while the Central Bank’s auctions may provide temporary relief, they are not a sustainable solution. They emphasize the need for comprehensive financial reforms and restored international engagement to address the ongoing currency volatility and broader economic challenges facing Afghanistan under Taliban rule.
The Taliban’s efforts to stabilize the economy continue to face significant hurdles, reflecting the broader uncertainties of governing in a financially strained and internationally isolated environment.
