$406m auctioned last year to keep afghani stable

KABUL (Pajhwok): Da Afghanistan Bank (central bank) auctioned 406 million US dollars last year to keep the afghani stable; a move economic experts consider effective in short term, asking the government consider other ways as well.

According to information published on DAB website, the bank auctioned a total of 406 million US dollars last year, except four months.

DAB spokesman Hasibullah Noori told Pajhwok Afghan News that the bank had been able to keep the afghani stable and maintain its value well through dollar auctions in the country’s markets over the past year.

He said the bank also implemented rational monetary policies and did not allow sharp fluctuations in this regard.

According to him, the bank uses various monetary policy tools to achieve its primary goal, which is domestic price stability.

Meanwhile, some economic analysts consider dollar auctions by the central bank effective for short-term stability of the afghani.

However, they recommend increasing exports, attracting foreign capital, establishing political stability, and strengthening economic institutions for long term stability of the local currency.

Economic analyst Noorullah Aziz told Pajhwok it was one of DABS’s responsibilities to maintain the value of the afghani and implement plans and programs.

He said a stable afghani prevented inflation.

He noted although DAB had implemented some programs from time to time to stabilize the afghani, still there was high demand for dollars in Afghan markets as many people exchange their afghanis into dollars to import goods from abroad.

He added DAB should focus on all those programs and policies that could have a positive impact the stability of the afghani.

According to him, dollar auction is a solution in the short term, but in the long term, the government needs to consider other ways, such as increasing exports and attracting foreign capital.

Another economic analyst, Sayam Pasar, told Pajhwok Afghan News a stable afghani was important for the country and depends.

He said political situation in the country affected the stability of the afghani and it was essential that the afghani was also used in business.

He said the auction of dollars in the market by Da Afghanistan Bank from time to time has an impact on the stability of the afghani in the short term, but was not a solution in the long term.

According to him, the long-term solution is to fight poverty, reduce unemployment, create jobs for the people, establish political stability, and use the afghani in all aspects of business.

Faizi Zadran, deputy spokesman for the Kabul Shahzada Sarai Money Changers told Pajhwok Afghanistan’s monetary system was a management system.

He said dollar auctions maintained a balance between the dollar and the afghani.

Referring to announcements issued by Da Afghanistan Bank, he said that the bank has sufficient reserves and that the bank has been able to protect the national currency within the framework of its management system.

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