The Central Bank of Afghanistan, under Taliban control, has announced plans to inject an additional $20 million into the market on Tuesday in an effort to stabilise the afghani amid ongoing currency depreciation.
The move comes in response to the suspension of U.S. foreign aid and the subsequent decline in the value of Afghanistan’s currency. Over the past few weeks, the Taliban has injected tens of millions of dollars into the market to counteract the economic impact.
On 24 January, the U.S. State Department informed its diplomatic missions that, under an executive order by former President Donald Trump, all foreign aid—except assistance to Israel and Egypt—would be suspended for 90 days.
As a result, the afghani, which had been trading at 69 per U.S. dollar, has since weakened, exceeding 80 afghanis per dollar.
Previously, dollar injections into Afghanistan’s currency market had helped maintain relative stability in the afghani’s value. However, the recent decline has caused growing concern among Taliban officials.
On 30 January, multiple currency exchangers in Kabul told Afghanistan International that Taliban intelligence agents had been deployed to Sarai Shahzada, the country’s largest currency exchange market, to monitor and regulate exchange rates.
The latest cash injection is part of the Taliban’s broader strategy to prevent further economic instability, though concerns remain over long-term financial sustainability amid diminishing international support.
