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

Customers wait to pay government fees at the headquarters of the Da Afghanistan Bank, Afghanistan’s central bank, in Kabul, Afghanistan [Victor J. Blue/Bloomberg via Getty Images]

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.

READ: Taliban ban use of foreign currency in Afghanistan

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.

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