The departure of the US from Afghanistan has resulted in the emergence of an illegal currency market worth 1.8 to 2 billion USD, which is decreasing the availability of dollars in neighboring countries and causing its value to rise. This highlights the close relationship between security and economics.
Approximately $5 million is being smuggled into Afghanistan from Pakistan daily, and the Afghan central bank now has enough reserves to sustain its economy. Meanwhile, Pakistan is facing a rapidly escalating economic crisis. However, It is unclear who is counting the money at the border and providing the statistics. Without further information or a credible source, the authenticity of these claims cannot be verified. It is important to question the reliability of sources and gather information from multiple sources before making conclusions or spreading information.
The Afghan central bank is injecting $17 million into the market on a weekly basis. Additionally, smugglers are bringing in $5 million daily, and the UN is providing $40 million in humanitarian aid each week. This shows that Afghanistan is performing better than Pakistan.
According to Bloomberg, the exchange rate of $1 to 124.18 Afghanis from last year has now reached 89.96 Afghanis, making it the strongest reaction against the dollar globally. Meanwhile, the Pakistani rupee depreciated by 37% during this period, which is the largest drop against the dollar worldwide. It seems like we don’t need enemies with these economic developments.
If your foreign exchange operates like a black market, you will naturally look for someone who offers a better rate. It is common for currency exchange rates to be better in countries where the market operates illegally. However, the smuggling equation refers to the illegal transfer of currency across borders, which can impact the exchange rate and overall stability of the economy.
