Afghan central bank injects more money to stabilize local currency

view original post

Photo taken on April 26, 2022 shows paper currency at a money exchange market in Kabul, Afghanistan.  (Photo by Saifurahman Safi/Xinhua)

The Afghan central bank will further inject 12 million U.S. dollars into the local market to boost the national currency afghani.

KABUL, May 11 (Xinhua) — Afghanistan’s central bank, the Da Afghanistan Bank (DAB), said Tuesday it would further inject 12 million U.S. dollars into the local market to boost the national currency afghani.

The DAB said in a statement that it was requesting all eligible banks and monetary service providers, among others, to participate in the auction scheduled for Wednesday.

“In auction bids, partial settlement of currencies is not allowed and the winners of the auction must deposit in the Da Afghanistan Bank their money at one time in cash,” the statement said.

The U.S. dollar has depreciated against afghani compared with a couple of weeks ago. The DAB conducted auctioning of 12 million U.S. dollars late in April.

Since the Taliban’s takeover of Afghanistan in August last year, the United States has frozen more than 9 billion U.S. dollars of assets of Afghanistan’s central bank, thus undermining the banking system of the war-torn country.