Rise in Dollar Value in Afghanistan Impacting Food Prices

In the past two weeks, the value of one US dollar has increased by four afghani in Afghanistan. 

According to data from Sarai Shahzada money exchangers, one dollar is currently exchanged for 70.40 afghanis.
Alongside the rise in the dollar’s value, some residents of the capital have complained about the increasing prices of food items in the markets.

Afghanistan remains dependent on importing most of its essential goods from foreign countries, as it has not yet achieved self-sufficiency in food production.

Mohammad Akbar, a Kabul resident, said: “The price of food items has reached about 1,700 to 1,800 afghani. How can someone earning 200 afghani a day afford rent, food, and utility bills?”

Shir Mohammad, another Kabul resident, urged the government to take action to reduce prices: “We ask the Islamic Emirate to work on lowering the prices of flour and cooking oil so that shopkeepers don’t overcharge.”

Some shopkeepers attributed the rising food prices to the increase in the dollar’s exchange rate against the afghani. They noted that currency fluctuations have negatively impacted their businesses as well.

“The dollar becomes expensive, and we don’t know why. We, as small shopkeepers, sell a can of oil with a profit of just 20 afghani, but when the dollar’s value rises, we may incur losses of up to 100 Afghanis,” said Gul Mohammad, a shopkeeper.

“Previously, the price of a can of oil was 1,350 afghani, but now it has risen to 1,850 afghani. If prices were lower, we’d sell more,” said Abdul Wahid, another shopkeeper.

The Central Bank announced it would prevent severe fluctuations in the exchange rate of foreign currencies.

Haseebullah Noori, the bank’s spokesperson, told : “The Central Bank of Afghanistan is working to manage the dollar’s value effectively and ensure the afghani doesn’t lose its worth,” said Haseebullah Noori, the spokesperson of Da Afghanistan Bank.

The afghani is now among the stable currencies in the region. If market demand arises, the Central Bank has sufficient resources and will act with reasonable monetary policies to maintain the afghani’s stability.”
Yesterday, the Central Bank announced it had injected $16 million into the market to control the exchange rate.