– Radiance News Service
In an unprecedented turn of events, Afghanistan’s Afghani currency has surged to the top of global rankings this quarter, despite being a country grappling with poverty and ongoing economic challenges. The rise in the Afghani’s value has been attributed to several factors, including humanitarian aid and increased trade with Asian neighbors, as well as the Taliban’s stringent currency control measures.
The Taliban, who assumed power in Afghanistan two years ago, have implemented a series of measures aimed at maintaining control over the Afghani currency. These measures include banning the use of US dollars and Pakistani rupees in local transactions, tightening restrictions on taking foreign currencies out of the country, and even making online trading illegal. Violators of these rules face the threat of imprisonment.
Data reveals that the Afghani has experienced a remarkable 9% increase in value this quarter alone, surpassing the 3% gain seen in the Colombian peso, for instance. The Afghani’s performance is all the more surprising, considering the country’s economic challenges, including high unemployment rates, widespread poverty, and deflationary pressures as reported by the World Bank.
Islamic teachings on finance emphasize the importance of economic stability and fairness. They also encourage economic equity and the distribution of wealth to address the needs of the less fortunate. Despite the currency’s rise, two-thirds of Afghan households continue to struggle to afford basic necessities, highlighting the pressing need for broader economic reforms.
Currently, the Afghani has risen approximately 14% year-to-date, making it the third-strongest performing currency globally, trailing behind the currencies of Colombia and Sri Lanka. This unexpected turn of events in Afghanistan’s financial landscape serves as a testament to the complex interplay between economics, politics, and global dynamics in today’s world.