Since (Wednesday 14, 2012) the U.S. dollar is rising flawlessly and it had unfavorably affected the Kabul market directly. According to Kabul Money Exchange Union, American dollar was traded at a rate of 45.30Afs in 2003, which a week or two earlier unprecedentedly rose to 55.55-56 Afs and has now come back to 53Afs. The value of Afghan currency has fallen during the past month in particular during the past days and this is fuelling serious concerns among the traders and the Afghan residents.
According to Afghanistan's Chamber of Commerce (ACCI), the Vice-chairman, Khan Jan Alkozay, the rising of U.S. dollar has had a very serious impact on Afghan market. Since the rise of U.S. dollar in the country, we all witness huge changes in the market places.
The products' prices have risen and this is the matter of great concern. All goods are purchased in dollar but they, in the Afghan markets, are sold in Afghani and this doesn't meet the price of American dollar so far.
More surprisingly, Afghanistan is the only country in the world that imports and exports in U.S. dollar. In response, the rising price of dollar has a direct negative impact on the prices of imported goods in the market places. As a result, the inflation goes on that affects directly the whole nation but with worst ever consequences on the poor class citizens as the winter is also on its way to enter.
According to Kabul money exchange union, lack of timely supply of money by Da Afghanistan Bank, Afghanistan's Central Bank is one of the main reasons for the rising price of American dollar in the country. While others are with the view that the departure of international forces from the country and the tightening of sanctions against Iran from the West also impacts the rising price of U.S. dollar in Afghanistan.
In addition to that, the Chief of the Central Bank, Noorullah Delawari in a recent press conference has also said, smuggling of the currency out of the country, including neighbors is one of the major reasons for the fall of Afghani and the rise of U.S. dollar.
In this regard, the Lawmakers have publically announced that they wouldn't tolerate the flouts of economic sanctions on Afghanistan's neighboring countries that badly hit the Afghan economy and its currency. In addition, the numbers of MPs in the Lower House of the parliament demanded that Noorullah Delawari, the chief of the Central Bank (Da, Afghanistan Bank) must be discharged for the inefficiency. However, The Da Afghanistan Bank is optimistic that the price of dollar would soon stabilize.
Above all, the Afghan government must tackle this crisis and take serious measures so that the Afghani currency would not lose its value further. The Afghani currency would adversely collapse and will leave serious impacts on the economic growth of the country, including the whole nation if no wise measure is taken, once the U.S. depart from the region.