A recent report by the World Food Program (WFP) highlighted that Afghanistan is facing a sharp rise in commodity prices, primarily driven by the depreciation of its currency, the Afghani (AFN). During the fourth week of January 2025, the Afghani experienced over 9% decline against the U.S. dollar, with the exchange rate reaching AFN 81 per USD.
Since most staple food items, including wheat flour, cooking oil, and rice, are imported, fluctuations in the exchange rate have a direct and immediate effect on local market prices.
In response to the currency’s volatility, the central bank of Afghanistan, Da Afghanistan Bank (DAB), has been actively conducting foreign exchange auctions to stabilize the Afghani and prevent its depreciation. Recently, DAB held two auctions, selling $25 million on January 25, 2025, and $27 million on January 27, 2025, as part of its efforts to support the currency. These measures were designed to counteract exchange rate volatility and bolster the Afghani's value.
The recent surge in the value of the U.S. dollar was largely attributed to news of former U.S. President Donald Trump's decision to temporarily halt foreign aid to several countries, including Afghanistan. In a statement issued on January 25, DAB sought to reassure the public, emphasizing that it had sufficient financial resources to maintain price stability, ensure liquidity and meet the foreign exchange needs of financial institutions within the country. This declaration helped restore confidence in the currency and contributed to its stabilization.
Since regaining power, the Taliban has implemented a series of stringent measures to stabilize and strengthen the Afghani against foreign currencies. These efforts have included banning the use of foreign currencies in local transactions, requiring businesses and individuals to conduct all trade in Afghanis.
Additionally, the Taliban has tightened border controls to prevent the smuggling of U.S. dollars out of the country. These measures, combined with regular foreign exchange auctions by DAB, have played a crucial role in maintaining the Afghani’s stability.
Through a combination of strict currency controls, crackdowns on smuggling, dollar auctions, and the promotion of trade in Afghanis, the Taliban has managed to stabilize the Afghani.
Nevertheless, the situation remains precarious. If external financial support were to cease or economic pressures intensify, the Afghani could face renewed depreciation, leading to further increases in commodity prices and exacerbating the challenges faced by the Afghan population.
Four people were killed, including a child, in Ukrainian strikes on the Russian port city of Novorossiysk overn...
Iran’s Revolutionary Guards (IRGC) said on Wednesday they attacked two U.S. vessels and eight oil tankers in the Persian Gulf, calling the st...
Ukrainian President Volodymyr Zelenskyy's aircraft was nearly struck by a drone while departing Moldova on ...
Four people were killed, including a child, in Ukrainian strikes on the Russian port city of Novorossiysk overnight, according to the governor of the Krasnodar region. Ukraine's drone forces commander, Robert Brovdi, said Russian military ships were destroyed in the attacks.
A TV channel was struck during a live broadcast on Tuesday, Ukrainian President Volodymyr Zelenskyy said, as Russian strikes on Kyiv killed at least three people, the city's Mayor Vitali Klitschko said. Meanwhile, drones hit civilian infrastructure in Russia's southwestern Saratov region.
U.S. Central Command (CENTCOM) said its forces destroyed five Iranian crude oil carriers after the Islamic Revolutionary Guard Corps (IRGC) allegedly launched two ballistic missile attacks against a U.S. Navy warship over the past two days.
Wildfires have broken out in Türkiye’s Antalya province, forcing hundreds of people to evacuate as strong winds fuelled the flames.
Indonesia has reopened Jakarta's main airport and four others after volcanic ash from Mount Anak Krakatau forced widespread flight cancellations, though fresh eruptions have kept authorities on alert.
Kazakhstan is stepping up investment in the Middle Corridor as rising freight volumes and demand for more diverse trade links drive the rapid expansion of the route connecting Asia and Europe.
Georgia’s International Maritime Forum has closed in Batumi with officials setting out investment targets, timelines and technical plans aimed at expanding the Middle Corridor and strengthening the country’s role in global trade.
Iran says it has delivered on its promise of a “faster, heavier and more painful” response to Washington, striking U.S. bases, warships and commercial vessels early on Wednesday.
Central Asian foreign ministers have marked 20 years since a landmark nuclear-free treaty, reaffirming their commitment to regional security, nuclear non-proliferation and disarmament.
Saudi Arabia’s international leisure tourism industry is forecast to grow by 93 per cent between 2025 and 2030, as the kingdom expands beyond religious travel. The figures were presented during WTM Spotlight Riyadh, where industry leaders discussed the growing tourism market.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment