KABUL – Afghanistan’s central bank announced to auction $10 million on salefor banks and foreign exchange dealers on Tuesday in order to arrest thedeclining value of currency.
The economy of war-torn has been witnessing freefall since theinternational community seized support to Afghanistan after the Talibanseized control of Kabul in mid-August. The banking system has alsoannounced weekly withdrawal limits to avoid the collapse.
The United States has frozen around $9 billion reserves of the Afghanistan’central bank held outside the country, despite calls from differentcountries to release the reserves so Taliban-led government could avert thelooming humanitarian crisis.
A money exchanger told Reuters that the afghani has dropped to 93.08against dollar as compared to 91.20 four days ago.
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The central bank has invited eligible banks and foreign exchange dealers toparticipate in the auction.
“We assure our esteemed compatriots that the functioning of the country’sbanking system will soon return to normal and that the stability of theafghani will be maintained,” the central bank said in an announcement.
