Currency of India and Afghanistan
There is a lot of pressure in the Indian currency these days. A continuous decline is being seen in the rupee. Last Friday, the Indian rupee once again made a record low and crossed the figure of 90.50. Amidst the weakness of Indian currency, discussion about Afghan currency has also started. Because the currency there is stronger than India. Yes, you may not have believed it the first time you heard it, but this is the truth now. Afghanistan’s currency is stronger than India’s. Let us know why the currency there is strong.
The currency of Afghanistan is Afghan Afghani, whose value in Indian rupees is currently equal to 1 rupee 38 paise. That means, if you earn Rs 1 lakh in Afghanistan today, the value of that Rs 1 lakh will become Rs 1 lakh 38 thousand when you come to India. But the currency of Afghanistan is strong or looks strong despite the Taliban rule. It is important to understand this.
Why is Afghan currency strong?
After coming to power in the year 2021, Taliban banned the use of US dollars and Pakistani rupees in Afghanistan. Due to absence of foreign currency there is no demand for it. The government has limited transactions to local currency and has kept strict controls on import-export. Since international trade and investment are extremely limited, there is no external pressure on the Afghan currency. The country’s economy is currently confined to a small and closed circle, where the demand and supply of currency is almost balanced. This is the reason why the Afghan currency seems stable right now.
However, one thing to be understood in this is that if the currency of Afghanistan is strong, it does not at all mean that the economy there is very strong. Or their GDP is very good compared to India. The currency is in good condition as there is no circulation of foreign currencies. Trade is under control.
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