Editor in Chief: Moh. Reza Huwaida Monday, April 29th, 2024

The Promising Report of IMF

The International Monetary Fund (IMF) forecasted a promising future for the country's economy. In its report on economic growth of Afghanistan, the organization estimated a visibly positive economic prospective.
Previously, the government had put the GDP growth at 9.9 percent while IMF has forecasted it 11 percent.

The main reason behind is high agricultural productions due to satisfying level of rain and snow fall during last year, according to IMF and Afghan officials. IMF authority in Kabul also has drawn a better prospective for inflation. However, it should be noticed that just during two last weeks, Afghani has lost almost eight percent of its value against major currencies.

The fall in value of national currency was that sharp that central Bank authority forced to explain on reasons behind the issue and their plan to control or prevent further fall.

Noorullah Dilawari, the chief of Central Bank, has said trafficking of foreign currencies from the country and global financial problem are the main issues to blame. He said that the main reasons behind the fall of Afghani against foreign currencies have external factors: the global banking and financial situation is not good at all. Moreover, the imposition of severe economic sanctions against our neighboring country, hinting to Iran, has led lack of foreign currencies and caused the fall of Afghani.

The Central Bank officials have also said that the currency reserves of the country worth around seven billion dollar and they will inject them to the market in order to control the value of national currency.

It should be noticed that value of Afghani has been kept high with the support of huge foreign donations. While it is not clear what may happen after decrease of foreign financial support.

Presently, the country suffers from huge trade deficits. Annually it imports goods and services worth billions while exports around millions. This gap clearly leads to decrease of foreign currency as entrepreneurs will fall in need of foreign currencies in order to import goods and services. In other words, such trade deficits increase demand for foreign cash which ultimately rise their value against national currency. Anyhow, the report of IMF is good news for Afghans who are much more familiar with negative reports about the country.