Afghanistan’s currency has plummeted about a quarter since the Taliban seized power, exacerbating an economic crisis that has left millions of people in the import-dependent country facing starvation.
The afghani has fallen to 105 per dollar from about 80 before the hardline Islamist group’s August victory, making it among the world’s worst-performing currencies over the past six months. It is second only to Turkey, where the lira has been battered by Recep Erdogan’s unorthodox economic policies.
In Afghanistan, withdrawing US and allied powers cut off the funding that made up 80 per cent of the government’s budget, froze more than $9bn in central bank reserves and enforced sanctions that have paralysed the financial system. Banks have been unable to operate properly and public workers such as doctors and teachers have not been paid.