Why has the value of the Afghan currency increased against the dollar and other foreign currencies?
The increase in the value of the Afghani currency against the dollar and other foreign currencies can be due to several main reasons:
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Increasing exports and decreasing imports: If Afghanistan is able to increase its exports and decrease imports, the demand for foreign currencies will decrease and the value of the domestic currency will be strengthened.
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Central Bank Support: If the Central Bank of Afghanistan intervenes in the currency market, for example by injecting dollars into the market or buying Afghani, this can increase the value of the Afghani.
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Decreasing demand for dollars: If the demand for dollars has decreased, due to a decrease in imports or restrictions on the use of foreign currencies, the value of the Afghani will rise against the dollar.
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Control and management of currency by the Taliban: One of the possible reasons can be the financial and economic policies of the Taliban, which has limited the flow of foreign currencies and has led to the strengthening of the Afghani value. The Taliban are trying hard to control the cash flow of dollars and apply strict policies to prevent smuggling and illegal use of foreign currencies.
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International cash aid: Afghanistan has received cash aid from the international community in recent years, and bringing this amount of dollars into the market can reduce the demand for dollars and strengthen the value of the Afghani.
These factors together can increase the value of the Afghani currency.