Amid growing calls for the cutting U.S. financial aid to Afghanistan under Taliban rule, the Afghanistan currency has once again depreciated against the U.S. dollar. On Sunday, one U.S. dollar was traded at 74 Afghanis in Afghanistan's currency markets.
U.S. President-elect Donald Trump, in a press conference on Tuesday, January 7, condemned the decision of President Joe Biden’s administration to send funds to the Taliban-led government, calling it unacceptable and stressing the need to halt these payments.
Internal pressures and widespread criticism in the U.S. House of Representatives, coupled with Trump’s recent remarks about cutting aid to the Taliban government, have contributed to the continued decline of the Afghan currency.
Several members of Congress have argued that U.S. assistance has unintentionally strengthened the Taliban government. Anna Paulina Luna, a U.S. House Representative, criticized the country for sending $40 million per week to the Taliban, a group she described as a serious threat to the United States. She insisted that no cent of taxpayer money should be directed to the Taliban.
Earlier reports by the U.S. Special Inspector General for Afghanistan Reconstruction (SIGAR) revealed that nearly three billion dollars have entered Afghanistan since the Taliban assumed control.
In response, Afghanistan’s central bank, operating under Taliban control, announced measures to stabilize the currency market and curb further devaluation of the Afghani. A statement released on Sunday, January 12, assured that "sufficient resources" are available for market intervention and that foreign currency demand will be met if necessary. The bank also emphasized that it is closely monitoring exchange rate fluctuations to maintain economic stability.
The future of U.S. financial assistance to Afghanistan remains uncertain. With potential leadership changes in the U.S. and the possibility of Trump’s return to power, some American politicians are calling for a complete cessation of aid, arguing that it inadvertently strengthens the Taliban—contrary to U.S. values.
Since the Taliban’s return to power, Afghanistan has faced severe economic challenges due to international sanctions and the suspension of foreign aid. However, humanitarian assistance has temporarily prevented the collapse of the Afghan currency and alleviated some of the country's economic crisis.
