Afghani currency volatility deepens economic struggles
Afghanistan’s currency, the afghani, has seen sharp fluctuations in value recently, worsening the economic challenges faced by millions, Afgn Amu news outlet said. The currency’s instability, linked to the suspension of U.S. aid and the Taliban’s currency management, has caused concern for both citizens and economists.
Last week, the exchange rate was 84 afghanis per U.S. dollar but recently strengthened to 75 afghanis per dollar. Despite this change, prices for essential goods have remained high, worsening the financial burden on Afghan families.
Economic analysts explained that the fluctuation of the dollar, which significantly impacts Afghanistan’s economy, has caused price hikes across the market. For many, the rising cost of basic necessities, especially food, is especially burdensome during the harsh winter. Resident of Farah, expressed the difficulty of managing increased costs. “A sack of rice that used to cost 1,900 afghanis now sells for 2,300,” they said.
Since the Taliban’s return to power in 2021, Afghanistan’s economy has faced severe turmoil due to international sanctions and frozen foreign assets. The United Nations projects that nearly 23 million Afghans will need humanitarian aid in 2025, with the ongoing economic instability likely worsening the crisis. As the nation’s economic pressures increase, many fear that more people will fall deeper into poverty.
