KABUL (SW) – Analysts believe the recent moves by the Taliban to stabilize the value of afghani currency against the US dollar would not yield any results.
Following the unprecedented depreciation of the afghani against the US dollar in recent days, the central bank, Da Afghanistan Bank announced yesterday that it would auction $ 10 million worth of dollars to stabilize the afghani currency.
Some economists, however, say that injecting this amount of money can not be effective in stabilizing the afghani currency.
Analysts said that the main monetary reserves are not available to the Islamic Emirate at the moment and there are not enough foreign currency reserves.
Economic expert Ali Mashaal emphasized that $ 10 million is insignificant compared to the rate of increase and decrease in the afghani, and that this measure may only be effective for the psychological stability of the people.
“The money that has been spent is very insufficient,” he said. “Because the intensity of the increase in the price of the dollar is much greater than the amount of this money. This action can only bring psychological stability to the people and assuring them that the government has other reserves to distribute if necessary.”
Saifuddin Seyhoun, another economist, says that sustainable economic activity is needed to balance monetary value, and that injecting currency alone is not the solution without the resumption of production and exports.
Following the Islamic Emirate’s complete domination of Afghanistan, the assets of the DAB abroad were freezed, and in addition, economic activities inside the country slowed down.
ENDS
