- With the abrupt withdrawal of foreign support following the ousting of the US-backed Afghan government, the economy entered into free fall.
- The central bank invites eligible banks and forex traders to bid for the sale.
- Assures “our esteemed compatriots that the functioning of the country’s banking system will soon return to normal.”
KABUL: The Afghan central bank has announced that it will put up $ 10 million on sale for banks and forex traders at an auction on Tuesday as it seeks to support the Afghan currency after a sharp drop in recent days.
With the abrupt withdrawal of foreign support following the Taliban victory in August, the Afghan economy went into free fall, straining the banking system which set weekly withdrawal limits to stop a bank run.
Some $ 9 billion in central bank reserves held outside the country have also been frozen by the United States, despite growing calls for them to be released to help ease the financial crisis that is strangling the economy.
According to a bureau de change of the main stock exchange Sarai Shazada, the afghani was listed at 93.80 to the dollar. This compared to a price of 91.20 four days ago.
The central bank invited eligible banks and forex traders to bid for the sale. He said all successful bids must be fully approved by the end of the day.
“We assure our esteemed compatriots that the functioning of the country’s banking system will soon return to normal and that the stability of afghani will be maintained,” the central bank said in a statement.