KABUL (SW): Khalil Siddiq, Governor of the Da Afghanistan Bank (DAB) stressed on Sunday that the devaluation of the afghani against the US dollar was not due to weakening of the local currency but because of the global surge in the value of the dollar.
He told a press conference that in the past two years, the US economy has improved and more people have got jobs in the States that led to the surge in the value of the green buck. Siddique cited examples of a number of currencies losing their value against the dollar.
The DAB governor noted that the afghani has lost some 21 percent of its value against the USD, the British pound lost 7.3 percent, Turkish lira 21 percent, Turkmenistan’s manat 22.5 percent while Tajikistan’s somani has lost 45 percent of its value against the dollar.
He went on to state that still, considering the economic state of the country, afghani is still well-placed. Siddiq mentioned that as much as $ 300 million have been pumped into the open market during the past one year to keep the afghani afloat. The central bank’s governor indicated that it is planned to provide similar amount to the market in the coming year.
He expressed optimism about the future of the country’s economy. “If peace talks [with the Taliban] are successful and the planned endeavors are materialized, value of the afghani would surge against the dollar”, he said.
On Sunday, dollar was trading against afghani at 1:69.2 in the open market.
ENDS
