Afghani currency becomes nine percent stronger

It may sound strange but it’s a fact.

Afghanistan's currency Afghani has become the best currency in the month of September. It became stronger by nine percent in three months and 14 percent in a year.

The value of Afghani is 78.25 in comparison to USA dollar.

Colombia's currency Peso has the second place with three percent stronger.

At the same time, 'Afghani' is at number three on an annual basis. The peso is at number one and the Sri Lankan rupee reserved number two. Geo-political expert Kamran Bukhari claimed that the strength of the currency is for the short term, because there is economic, social and political instability here. The Taliban acquired Afghanistan on August 15, 2021.

The Taliban have taken 5 major steps to make Afghanistan strong:

Ban on use of Dollar and Pakistani rupee in local transactions

Tightening restrictions on carrying US dollars outside the country

Banned online trading and strict punishment for the violations

Billions of dollars in humanitarian aid boost economy

Growing trade with neighbours also strengthened the Afghan currency.

Anvita Basu, head of Europe Country Risk at BMI in London, said, "Strict restrictions on foreign exchange transactions and a very gradual improvement in trade are increasing demand for Afghani. "By the end of the year, the Afghans are likely to stabilise at current levels, she said.

After this, the central bank has increased withdrawal level from 25 thousand Dollar to 40 thousand Dollar per month.

For individuals, it has been set to 600 Dollar per week which was 200 Dollar two years back. The strengthening of the currency has reduced the pressure of inflation which give the result that imports to Afghanistan have become cheaper.

As per the report of the World Bank, Afghanistan's economy will stop shrinking this year and register a growth of two percent to three percent by 2025. However, it has also warned of risks such as a reduction in global aid.