KABUL (SW) – The central bank, Da Afghanistan Bank has announced to auction an estimated $ 10 million worth of foreign exchange reserves in a bid to stabilize the currency market.
The DAB requested eligible banks and monetary services companies to participate in this bid.
Analysts believe the recent moves by the Islamic Emirate to stabilize the value of afghani currency against the US dollar would not yield long-term results.
Following the unprecedented depreciation of the afghani against the US dollar in recent days, the central bank, Da Afghanistan Bank last year made similar announcement 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.
Following the Islamic Emirate’s complete domination of Afghanistan, the assets of the DAB abroad were frozen by the US, and in addition, economic activities inside the country slowed down eventually affecting the currency value.
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