Afghanistan - Markets still mired with high prices
Date
12/20/2021 2:19:47 PM
(MENAFN- Afghanistan Times)
AT News
KABUL: Prices of essential food and fuel items remain high in Afghanistan markets even after the country's currency recovered after it dived to a record low of 30 percent against the US dollar earlier this month.
The value of afghani currency had dropped drastically, mostly driven by an enormous shortage of dollars since the Taliban seized power in August as international donors suspended billions in aid provided annually. But after the Taliban stepped in and restricted transactions across the big cities last week, the US dollar depreciated to 98 afghanis, from 130 afghanis days ago.
The losses last week came as an economic collapse and humanitarian crisis grip the country. Prices of goods skyrocketed following a sharp decline of afghani value early this week.
Even though the rate of foreign currencies has dropped in recent days, but the price of food, gas and fuel as well as car fares have not changed significantly.
Basic services are collapsing while food and other life-saving aid are about to run out.
The situation worsened following the freezing of over $9 billion of Da Afghanistan Bank assets by the US as well as a halt of funds by the World Bank and the International Monetary Fund.
The Taliban government has also not been able to fully pay overdue salaries of government employees including teachers. The majority of some 400,000 state employees have only received wages of two months since July. Banks are also facing bankruptcy with savings and funds depleting.
People have been caught in the sticky wicket of the financial crisis which has stifled most of Afghanistan. The United Nations is predicting that more than 22 million Afghans will not have enough food by next year in Afghanistan, signaling that the country will face a famine next year.
The recent crisis has forced many Afghans to flee the country, but the Taliban officials have been trying to convince the people to stay, promising them that the challenges will be solved in near future.
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