A number of foreign exchange bureaus in Kandahar said they are seeing an increase in the smuggling of US dollars from Afghanistan to some neighboring countries, mainly Pakistan, alarming that this will further affect the country’s fragile economic situation if it is smuggled. continues.
They said “millions of Pakistani rupees” are imported into Kandahar from Pakistan and exchanged for US dollars and brought back to the neighboring country.
The exchange bureaus said that the demand for the US dollar is increasing in the market and most of their customers buy the US currency by selling Pakistani rupees.
They said the newly imposed restrictions on transactions involving US dollars in Pakistan caused an increase in the smuggling of dollars from Afghanistan to the neighboring country.
âSome Pakistani investors buy US dollars in the markets and in return they inject Pakistani rupees into the markets,â said Haji Babai, a money changer.
“There are many challenges … Nowadays there is a shortage of dollars in the local market,” said Haji Qandi Agha, a money changer in Kandahar.
It comes amid an unprecedented drop in the afghani against the dollar over the past two months. Analysts have said that smuggling dollars out of the country is one of the reasons the value of afghani is falling.
âThis long-term problem can cause economic inflation in the country. The smuggling of dollars should be stopped; otherwise it will cause problems for the country, âsaid university professor Rahmatullah Pashton.
Before the collapse of the old government, the Afghan Central Bank injected US dollars into local markets to ensure stability in Afghanistan. Recently, amid a pause in the international community’s support for Afghanistan, the value of the afghani has fallen against the dollar.
TOLOnews was unable to obtain comment from central bank officials on this report despite consecutive efforts.