Tea and Liberty meeting on the issue of losing the value of the Afghani currency
The series of tea and Liberty program about the loss of the value of the Afghan currency and the analysis of the country’s economic situation with a current and future perspective was held at the initiative of the Afghanistan Institute of Economic and Legal Studies in cooperation with White Assembly Organization and the Silk Road Online Radio.
In the Tea and Liberty program, hosted by Mohammad Khaled Ramizy; The CEO of AELSO , with the presence and speeches of Professor Seyed Masoud; Professor of Kabul University and senior analyst of economic affairs, and with the participation of young people, students, university professors and researchers on the issues of the devaluation of the Afghan currency against foreign currencies, especially the US dollar, the blocking of 9.5 billion dollars of Afghanistan’s national capital and foreign accounts in America. and international banks, the monetary policies of the government during the last two decades, the responsibility of private banks for the deposits of Afghan citizens, inflation and the basis for determining the value of the Afghan currency, were discussed and exchanged.
Professor Seyed Masoud considers the instability of the Afghan currency as a result of the political and artificial valuation of the Afghan currency, which after the formation of the transitional government led by Hamid Karzai; The Afghan currency was valued with the backing of the dollar but with a political decision. Therefore, political changes and developments have an effect on the value of the Afghan currency, and on the other hand, after the recent developments in the country and the blocking of Afghanistan’s foreign exchange capital in America, which is actually the financial support of the Afghan currency, it has had a negative effect on the decline of the Afghan currency against foreign currencies. Is.
Professor Seyed Masoud added: Considering the trade-oriented nature of Afghanistan’s economy, the opening of foreign accounts and the resumption of our trade with the world is a priority over the liberalization of the country’s foreign exchange capital. Because our foreign exchange capital is the support and indicator of the stability of the Afghani currency. And it is not used to meet basic needs and necessities. On the other hand, 2.5 billion dollars of foreign exchange capital of the country; It is the support of private sector activities and another 7 billion dollars is related to the support of the national currency unit and the structure of the government, and these 7 billion dollars will be provided to Afghanistan when the current government gains international legitimacy.
Professor Masoud said about the payment method of Afghan citizens’ deposits by private banks: due to the empty treasury of the central bank; Private banks have determined the method of paying deposits to a certain amount, which has caused another challenge for citizens. In addition to the empty treasury of the central bank, the withdrawal of physical money by banks during the past years and after recent developments and its investment in international markets has caused a lack of liquidity in the country’s markets and banks.
On the other hand, the financial and banking system of the country is in the hands of a limited number of money changers and mafia who are trying to take physical money out of the country, which all these factors have contributed to the decline of the value of the Afghan currency against the dollar.
Professor Masoud, along with the factors and economic reasons for the decline in the value of the Afghan currency; He considered the loss of the value of the Afghan currency as a result of political factors and conditions and added: The value of the Afghan currency after 1357 has been artificial and political, in general, the value of the currency is determined by the gross national product. But due to the ongoing developments in the country, the Afghan currency has been valued instead of the gross national product with the support of the dollar and political decision.
Since 1357, these factors have caused the beginning of inflation, and in the current situation, it has reached its unbridled state.
Therefore, the Taliban should strengthen the process of political interactions so that the value of the Afghan currency reaches relative stability and economic order is established.
In the second and final part of the program, the participants, in addition to presenting their views on the discussed topics, raised their questions, which were answered by professor Seyed Masoud.
In response to questions about the policy of injecting dollars into the country’s markets, Professor Masoud said: In the past 20 years, 16 billion dollars have been injected to maintain the value of the Afghani currency, and this approach has made the country’s financial market dependent and addicted and artificially inflated the value of the Afghani currency. kept And in this way, the policy of injecting currency into the market is a failed policy. Alternative solutions should be evaluated and implemented.
To view the details of the topics and watch the program again, click here.
Publications and Public Relations Department