The central bank has warned Afghans not to use Pakistani Rupees as they could suffer huge losses.
Pakistani Rupee Loses Value Against USD
Afghanistan Central Bank (ACB) said Sunday that due to economic and financial problems in Pakistan, the International Monetary Fund (IMF) has announced that Pakistani Rupees will lose value against the USD.
ADB spokesman Aimal Hashoor said people who use Pakistani Rupees in Afghanistan may suffer heavy losses as a result and that the central bank will accept no responsibility in relation to this problem.
“Those who use Rupees will suffer as it loses value. These people should use Afghanis in their daily activities,” said Hashoor.
The possible inclusion of Pakistan on the grey list of the Financial Action Task Force on Money Laundering, Islamabad’s shortcomings in paying its debts and continued economic problems are the challenges that have raised concerns over possible problems in Pakistan’s financial and banking systems.
Shahzada Money Exchangers Union meanwhile raised concerns over the increased use of Pakistani Rupees in Afghanistan and said Pakistan recently decided to print a 10,000 Rupees banknote.
The union urged government to promote the Afghani on the local market so as to decrease the flow of Rupees in the country.
“There are millions of Rupees in every province. If we multiple this by 20 provinces, the result will show billions of Rupees being used in the country,” Amin Jan Khosti, a member of Shahzada Exchangers Union said.
Some economic analysts meanwhile said too much use of Rupees in some parts of the country will harm Afghanistan’s economy.
They said Pakistanis have been smuggling dollars from Afghanistan to Pakistan to prevent the devaluation of their currency.
Although ADB does not have a specific figure about the total amount of Rupees being circulated in Afghanistan, a number of exchangers said billions of Rupees are in circulation and now in addition to the border provinces, people are also using Rupees in central provinces.