KABUL: (MEP) – Following sharp decline in the value of Afghan currency against US dollar, the economists believe the political stability can help stability of Afghani.
Kabul University Professor, Sayed Massoud, told Ariana TV that the Central Bank’s policy of distributing millions of US dollars in open market was not the solution to the instability of domestic currency.
These statements come as the value of Afghan currency against foreign currencies has significantly dropped over the past few weeks.
Many believe the Afghan currency value has been dropped over strained relations between Karzai and Obama administration over Bilateral Security Agreement (BSA) which has also caused high prices of daily use items.
In order to curb the problem, the Central Bank each week distributes millions of US dollars in the exchange markets in order to make the domestic currency stable.
The economists, however, believe the Central Bank’s policy was not a right and effective practice to ensure stability of Afghani, once the most stable currency in the region due to international aid over the past 12 years, Ariana news reported.
“Political stability is the first and main condition for a stable currency. As well as, the policy of Central Bank also needs to be changed. Even the leadership of the Central Bank should be changed,” said Sayed Massoud.
Head of money changers’ union of Kabul, Najibullah Akhtari argued, “I don’t think our currency will be stable unless the fate of our relations with America and international community clarified.”
