Afghan Currency Sent Plummeting as Head of Central Bank Flees Country

The afghani, Afghanistan’s national currency, was sent plummeting on Tuesday, as rising political turmoil forced the head of the country’s central bank to flee.

As Taliban fighters gained control of the capital city of Kabul, the country’s currency continued its downward spiral. According to a series of tweets from Afghanistan’s central bank governor Ajmal Ahmady, the bank ran out of dollar supplies, which reduced its ability to boost the national currency.

On Tuesday, the afghani fell 1.7% to around 83.5 against the US dollar, showed data compiled by Bloomberg. “Currency spiked from a stable 81 to almost 100 then back to 86. I held meetings on Saturday to reassure banks and money exchangers to calm them down,” wrote Ahmady on twitter, adding that he has since fled the country.

Taliban forces have captured Kabul shortly after US President Joe Biden announced that all American forces would vacate the country by September 11. The political turmoil intensified over the weekend, and has even spread to neighbouring financial markets in Pakistan, where sovereign dollar bonds maturing in 2031 fell by the most since March.

Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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