Taliban move to stabilize local Afghan currency in face of financial sanctions

Afghanistan’s currency under pressure against US dollar as war-ravaged country reels from sanctions

ISLAMABAD:

Seeking to stem the plummeting value of the local afghani currency, the Taliban's interim government in Afghanistan on Monday vowed to auction $10 million on the open market.

In a statement issued by the Da Afghanistan Bank, the central bank, it was announced that this amount of dollars will be auctioned on Tuesday.

The bank asked private banks and forex traders to take part in the bidding process. The bank said the bidders would be asked to pay afghanis for the dollars.

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This comes as the afghani hit a two-decade low against the US dollar, with $1 trading for 95 afghanis.

Earlier this week, Human Rights Watch called for easing financial sanctions on Afghanistan. It urged the UN and international financial institutions to adjust existing restrictions and sanctions affecting the country’s economy and banking sector.

“Afghanistan’s economy and social services are collapsing, with Afghans throughout the country already suffering acute malnutrition,” said John Sifton, Asia advocacy director at Human Rights Watch.