Afghan central bank pumps in more money to stabilize the local currency
Kabul : Afghanistan’s central bank has announced that it will invest another $12 million in the local market to promote the national currency, the Afghani.
The Afghanistan Bank (DAB) said in a statement that it is requesting all eligible banks and monetary service providers to participate in Wednesday’s auction, Xinhua news agency reported.
“In the auction bids, partial settlement of currencies is not allowed and the winners of the auction will have to deposit their money in cash at Da Afghanistan Bank at a time,” the statement said.
Compared to a few weeks ago, the US dollar has devalued against the Afghani.
DAB auctioned off for $12 million in late April.
Since the Taliban’s takeover of Afghanistan in August last year, the US has frozen more than $9 billion in central bank assets, thus undermining the war-torn country’s banking system.