Central Bank has no answer for the declining value of Afghan currency

The US dollar was exchanged at a rate of 55 AFN yesterday once again after years.

The declining value of Afghan currency against US dollars is raising concerns among traders. With decreasing of Afghan currency value against US dollar, traders have to buy dollars at high price and as a result of that imported goods entered into the country at high prices and traders are directly affected.

In economics principle, a lower value of currency of a country should be beneficial for trade, as exports of the country become more attractive to foreign countries; however, due to low level of exports of Afghanistan and high imports, a lower currency value is not doing any good to the country.

A number of analysts have called on Afghanistan’s Central Bank, Da Afghanistan Bank (DAB), to implement the right policies needed to stabilize the currency.

TOLOnews contacted the central bank authorities for comment, but despite repeated calls officials refused to comment.

DAB is responsible to forumate, adopt and execute the monetary policy of Afghanistan.