2 yıl önce

Afghan central bank to auction $10 million to support battered currency

Eligible banks and foreign exchange dealers have been invited to bid in the sale as economy goes into freefall.

Reuters

Afghanistan's economy has been crumbling following abrupt withdrawal of foreign support following Taliban takeover.

Afghanistan's central bank has said it would sell 10 million dollars through an auction to banks and foreign exchange dealers as it seeks to support the afghani currency from a sharp fall in recent days.

The central bank invited eligible banks and foreign exchange dealers to bid in the sale on Tuesday.

It said all successful bids had to be cleared in full by the end of the day.

"We assure our esteemed compatriots that the functioning of the country's banking system will soon return to normal and that the stability of the afghani will be maintained," the central bank said.

Crumbling economy

With the abrupt withdrawal of foreign support following the Taliban victory in August, Afghanistan's economy has gone into freefall, putting a severe strain on the banking system which has set weekly withdrawal limits to stop a bank run.

Some $9 billion in central bank reserves held outside the country have also been frozen by the United States, despite growing calls for them to be released to help ease the financial squeeze that is strangling the economy.

According to a money exchanger in the main Sarai Shazada exchange, the afghani was quoted at 93.80 to the dollar. That was compared with a price of 91.20 four days ago.

SOURCE: Reuters