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Domestic, foreign elements behind currency devaluation: MP

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AT News Report-KABUL: A member of parliament said that devaluation of Afghani currency against US dollar was affected by both domestic and foreign elements.

The value of Afghani had an unprecedented fall against the US dollar in recent weeks, causing people’s concerns and a big jump in the price of essentials particularly foodstuff.

“If the government does not pay attention to the elements of the decrease of Afghani value against dollar, one dollar will be dealt up to 75 Afs by the new Afghan year,” said Monawar Shah Bahadori, member of parliament’s economy committee.

He said one element was the existence of a mafia circle in the Central Bank who is hoarding dollar.

“The Central Bank puts 50 million dollars in auction every week, but the mafia circle inside the bank smuggle the money to abroad,” Bahadori said Saturday.

Parliament’s economy committee calls insecurity, political problems, reduction in international aids, reduction in investment and increase of imports as the elements of Afghani devaluation against foreign currencies.

Suspension of the US military aid to Pakistan and imposing more US sanctions on Iran were considered as the foreign elements of decrease in Afghani price.

But, Khalil Seddiq, the Central Bank governor said that political tensions, fluctuations of the foreign currencies in the neighboring countries and completion of the government budget at the end of fiscal year were behind the decrease. “Political tensions have directly affected our currency price,” he said.

Aimal Ashour, spokesman for the Central Bank rejected any mafia activities in the bank. “Nobody is given dollars in the Central Bank, nobody has dollar banking account and nobody is even in touch to the dollars. This is a baseless allegation,” Ashour said.

He added that the Central Bank puts dollar on sale three times a week and the people that have license, can buy it. “Nobody from the Central Bank staff can attend the bid to buy dollars based on the law.”