Afghan currency slides, prices surge as economy worsens

The value of Afghanistan’s currency is tumbling, exacerbating an already severe economic crisis in the wake of the Taliban takeover and deepening poverty in a country where more than half the population already doesn’t have enough to eat

HERAT, Afghanistan -- The value of Afghanistan’s currency is tumbling, exacerbating an already severe economic crisis and deepening poverty in a country where more than half the population already doesn’t have enough to eat.

The afghani lost more than 11% of its value against the U.S. dollar in the space of a day earlier this week, before recouping somewhat. But the market remains volatile, and the devaluation is already impacting Afghans.

Afghanistan’s economy was already troubled when the international community froze billions of dollars’ worth of Afghanistan’s assets abroad and stopped all international funding to the country after the Taliban assumed power in mid-August amid a chaotic U.S. and NATO troop withdrawal. The consequences have been dire for a country heavily dependent on foreign aid.

Afghanistan was also slated to access about $450 million on Aug. 23 from the International Monetary Fund, but the IMF blocked the release because of a “lack of clarity” about the country’s new rulers. Since then, international envoys have warned of a looming economic meltdown and humanitarian catastrophe.