Afghanistan is seeing sharp rises in food prices despite a weaker US dollar, with flour, rice and cooking oil becoming costlier. Shopkeepers and residents say purchasing power has dropped, while authorities cite monetary policies as households struggle amid import and transit challenges.
According to the report, Afghanistan has been facing economic challenges due to reduced aggregate demand, including factors like the stronger local currency, dwindling household savings, reduced public spending, and the ban on opium cultivation.
The Central Bank of Afghanistan has initiated the promotion of the Afghani currency in the country’s southwestern region since last week and is likely to ban the use of Pakistani currency soon, reported Khaama Press.