The Central Bank of Afghanistan (CBA) on Monday announced plans to inject $850 million USD into the local market in order to stabilize the national currency and ensure the Afghan banking sector continues to function properly. Officials said the funds for the capital injection would come from the international community.
The decision emerged out of a High Council session of the Central Bank, which included the approval of bank administrators’ working agenda for the next 100 days.
“In the next quarter we are going to issue $850 million USD to the market. The decision came in line with the needs of the market and to avoid problems,” CBA acting governor Khan Afzal Hudawal said on Monday. “And also because of the supply, the country’s reserves will not be decreased,” he added, highlighting the advantage of having foreign countries foot the bill.
CBA officials have been forced to confront and try to mitigate a recent slide in the value of the Afghani currency against foreign currencies. Afghanis have sharply dropped against the US dollar in recent months from 57 to 60 Afs to the dollar.
According to CBA officials, the bank’s 100-day working priorities include improving monitoring of banking operations, stabilizing the national currency and implementing comprehensive programs to curtail money laundering.
“Our 100-day working plan has been approved by the CBA High Council, which also includes banking procedures and regulations, monitoring and investigations,” Hudawal said.
The Central Bank also announced that $150 million USD will be provided by the International Monetary Funds (IMF) to shore-up Afghanistan’s foreign reserves, which now number around seven billion USD.