The Afghani’s surprising resilience in the face of 40 years of war and suppression is a testament to the indomitable spirit of the Afghan people and the potential for economic recovery even in the most adverse circumstances.
A stack of worn-out Afghan banknotes is seen in this photograph July 27 in the courtyard of Sarayee Shahzada, a currency exchange market in Kabul. [Najibullah/Salaam Times]
In a world where economic stability often hangs in the balance, the Afghan Afghani (AFN) has emerged as an unlikely symbol of resilience and perseverance. Despite enduring four decades of conflict, political upheaval, and economic suppression, the Afghan currency has recently exhibited remarkable strength and stability.
For a country that has faced a protracted series of wars, foreign occupations, and political transitions, the Afghani’s resilience is a testament to the determination of the Afghan people and the potential for economic recovery in even the most challenging circumstances.
“The ruling Taliban, which seized power two years ago, has also unleashed a series of measures to keep the afghani in a stronghold, including banning the use of dollars and Pakistani rupees in local transactions and tightening restrictions on bringing greenbacks outside the country,” Bloomberg stated in its report.
Afghanistan’s turbulent history, spanning from the Soviet invasion in the late 1970s to the Taliban rule in the 1990s and the subsequent U.S.-led intervention, would seem to suggest a bleak economic outlook. Yet, the Afghani has not only managed to maintain its value but has also demonstrated the potential for growth and stability.
As per data compiled by Bloomberg, the afghani has risen around 9% this quarter, outpacing the likes of the Colombian peso’s 3% appreciation.
The afghani’s climb comes in stark contrast to its neighbour Pakistan, where the rupee has lost nearly 22% of its value in the ongoing calendar year alone – despite the recent 6% gain this month.
Several factors contribute to this surprising success. Firstly, the establishment of a new government following the U.S. withdrawal, albeit with its own set of challenges, has brought a degree of political stability. This stability, although fragile, has provided an environment in which the Afghani can regain its footing.
Additionally, international financial support and humanitarian aid have been pivotal in shoring up Afghanistan’s economy. Donor countries and international organizations have committed significant resources to assist the nation in its recovery efforts. This influx of foreign capital has boosted the Afghani’s exchange rate and overall economic stability.
Improvements in security conditions, particularly in certain regions of the country, have further encouraged economic activity and foreign investments. As areas become more secure, local businesses can thrive, contributing to the overall strength of the Afghani.
Furthermore, Afghanistan’s wealth of natural resources, such as minerals and agricultural products, presents significant export potential. Access to international markets for Afghan goods is increasing, leading to higher export earnings, which, in turn, strengthen the Afghani.
Efforts to reform monetary policies and fortify the Afghan central bank have also played a significant role. Implementing sound fiscal and monetary policies has created a more stable and attractive investment environment, which has positively impacted the currency’s performance.
The Afghani’s surprising resilience in the face of 40 years of war and suppression is a testament to the indomitable spirit of the Afghan people and the potential for economic recovery even in the most adverse circumstances. While challenges persist, the recent performance of the Afghani provides hope for a more stable and prosperous future for Afghanistan’s economy.
