The value of the afghani against the US dollar has risen by more than 11 percent compared to ten months ago. According to money changers and economic experts, higher inflows of foreign currency, the conversion of UN assistance into afghanis and regulatory measures by the central bank are the main factors behind this increase.
Mohammad Hussein, owner of Sadaqat Exchange in Sarai Shahzada, Kabul, told Pajhwok Afghan News that today (Thursday, 26 February) the buying rate for one US dollar is 63.20 afghanis, whereas in May 2025, one US dollar was exchanged at 71.30 afghanis.
Speaking on the factors behind the rise in the Afghani’s value against the US dollar, he stated that aid entering Afghanistan through the United Nations is converted into afghanis via the Afghanistan International Bank (AIB) and then used to purchase essential goods.
He added that the central bank has destroyed hundreds of millions of worn-out banknotes without issuing new ones. In addition, measures have been taken to prevent the smuggling of US dollars out of the country.
Mohammad Hussein described the decline in the dollar’s value against the afghani as beneficial for the economy, noting that it could reduce the cost of goods, provided that the market remains under control.
Meanwhile, Hamdullah Hamdard, Deputy Head of the Money Changers’ Union in Sarai Shahzada, Kabul, stated that, in addition to other factors, afghanis are now widely used across the country, whereas prior to the re-establishment of new government, some provinces relied on Pakistani rupees and Iranian tomans for transactions.
He added that with the arrival of Ramadan, Afghans living abroad remit money to their families, which has also contributed to the strengthening of the afghani.
At the same time, Qais Mohammadi, an economic expert, explained the factors behind the afghani’s appreciation against the US dollar: “When domestic demand for the dollar declines and people do not wish to exchange or hold dollars as savings, this causes the dollar’s value to drop. Several factors contribute to this: increased inflows of dollars through humanitarian aid, remittances, and trade; strict control of money flow by the central bank; and restrictions on the outflow of dollars, meaning the Islamic Emirate does not allow money to leave Afghanistan.”
He emphasised that monetary stability is extremely important. Over the past few years, following the Taliban’s takeover, the afghani has remained stable against the dollar, largely due to the central bank’s strict controls, including limitations on dollar transfers abroad.
Mohammadi explained: “Alongside domestic factors, external factors also play a role. The dollar has lost value against almost all major currencies over the past year. Changes in US monetary policy, including increased dollar supply to global markets and a more liberal approach, along with rising interest rates in other countries and global economic conditions such as oil prices, have caused instability in the dollar against many currencies.”
Abdul Nasir Rashtia, another economic expert, said: “The afghani’s rise against the dollar has multiple causes, including prevention of dollar smuggling, increases in domestic production, and exports, which generate foreign currency. In areas where foreign currencies were previously prevalent, the afghani is now widely circulated and used. Furthermore, the central bank’s monetary policies, such as weekly or monthly dollar auctions, have contributed to maintaining the afghani’s stability.”
He added that a lower dollar benefits importing countries like Afghanistan, as they can import more goods, whereas exporting countries generally prefer to keep their currency’s value low to boost exports.
Hasibullah Noori, spokesperson for Da Afghanistan Bank, said: “In May 2025 (Jawza 1404), one US dollar was exchanged at 71.30 afghanis; it has now fallen to 63.25 afghanis. According to calculations, this represents an 11.29 percent decline in the dollar’s value against the afghani, reflecting a strengthening of the Afghani over this period.”
On the reasons behind the afghani’s appreciation, he stated that consistent implementation of monetary policies, effective liquidity management, and ongoing alignment with real market conditions are key to maintaining the Afghani’s stability.
He added that, taking the country’s economic realities into account, Da Afghanistan Bank has managed to balance money supply and demand, preventing severe fluctuations in the currency market.
Noori noted that, according to available statistics, the afghani’s value against the US dollar has risen by 9.93 percent compared to last year, a clear indicator of monetary stability and effective economic policy implementation.
He also said that inflation has been effectively controlled. By November 2025 (Qaws 1404), the average inflation rate was recorded at 2.39 percent, indicating price stability, preservation of citizens’ purchasing power, and relative balance in the national economy.
He concluded that these positive indicators show that Da Afghanistan Bank’s monetary policies have been implemented regularly, purposefully and prudently, playing a crucial role in strengthening the country’s monetary and economic stability.
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