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Afghani losing its value, commodity rates on the rise

in Afghan Business

Afghani losing its value, commodity rates on the rise

The Afghani currency has been in free fall in the past four months, losing its value by 13% against the US dollars and 9% against the Pakistani Rupees.

According to Pajhwok Afghan News (PAN), the rates of food items and other commodities increased by 18% and fuel by 40%.

The Afghani currency reached at 68.65 AFN in Sarai Shahzada, Afghanistan’s largest financial market situated in capital Kabul. Four months ago, the exchange rate between AFN and US dollar hovered between 58-60 AFN.

Meanwhile, the Pakistani Rs has also appreciated against Afghani. In July, the buying rate of 1000 Pakistani Rs was 584 AFN; it currently accounts for 623 AFN in Sarai Shahzada market.

On the other hands, rates of food items and other commodities have soared.

Food Traders Union head Fazal Rahman says the price of a 49-kilogram bag of Pakistani flour was 1,460 AFN and the same quantity of sugar 2,120 AFN. A 24.5kg bag of rice cost 1,750 AFN, a 16-litre tin of ghee 1,000 AFN, a kilogram of green tea 210 AFN and the same quantity of African black tea 240 AFN.

In July of this year, a 49kg of Pakistani flour cost 1,230 AFN, the same quantity of sugar 1,620 AFN, a 24.5kg sack of rice 1,550 AFN, 16 liters of ghee 950 AFN, a kilogram of green tea 180 AFN and the same quantity of black tea 210 AFN. (Source: PAN)

One liter of petrol costs 51 AFN, compared to 48 AFN four months ago. The same quantity of diesel is sold at 42 AFN, compared to 41 AFN in July.

The price for one kilogram of liquefied gas has soared from 30AFN to 65AFN.

Some Kabul residents have called on the government to step in and control the prices.

Afghanistan’s economy began to decline considerably during last year’s electoral crisis, which brought investment level down by 40%. The rise in security forces’ operational costs during the current year, falling domestic production and capital flight of USD 2bn are cited as key reasons for the Afghani depreciation.

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