Billions of dollars in humanitarian aid and expanding trade relations with Asian neighbors have propelled Afghanistan's currency to an unexpected pinnacle in the global rankings this quarter. This is a remarkable feat for a nation grappling with poverty and holding one of the world's most dismal human rights records.
In the two years since the Taliban seized power, they have implemented a series of stringent measures to maintain control over the Afghani. These measures include forbidding the use of dollars and Pakistani rupees in local transactions, imposing stricter regulations on the export of U.S. currency, making online trading illegal, and issuing threats of imprisonment for rule violators.
These currency controls, coupled with increased cash inflows and other remittances, have contributed to the Afghani's impressive ascent of approximately 9 percent this quarter, surpassing the 3 percent gain of the Colombian peso, as reported by Bloomberg's data.
Year-to-date, the Afghani has surged by approximately 14 percent, securing its place as the third-best performing currency globally, trailing only the currencies of Colombia and Sri Lanka.
