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.
