Prices down after ban on foreign currencies in Kandahar

KANDAHAR CITY (Pajhwok): Traders and shopkeepers in southern Kandahar province say the value of the afghani has risen and commodity prices have fallen by five to 10 percent since the ban on buying and selling in foreign currencies.

Last week, the governor of Kandahar banned the use of foreign currency in the province after a meeting with traders to protect the value of the afghani.

Haji Abdul Ahad, head of the Kandahar Dried Fruits Association, told Pajhwok Afghan News that since last week, all transactions in Kandahar were done in afghanis, which had an impact on commodity prices.

Ahmad Zia, a grocery store owner in Kandahar City, said food prices had dropped in province by five to ten percent due to ban on transactions in foreign currencies.

He added that a three-liter can of cooking oil, which used to cost 500 afghanis, has now been reduced to 480 afghanis, while the price of a 50-kg bag of flour had reduced from 2200 afghanis to 2000 afs.

He added that similarly all items have become cheaper to some extent but the prices vary in different stores.

On the other hand, some people are urging the authorities to collect old banknotes from the market.

Azizullah, a shopkeeper in Kandahar City, told Pajhwok Afghan News that the recent ban on foreign currency transactions had led to an increase in the number of old banknotes in the market.

He says even banks are giving out a lot of old banknotes to their customers which has created a big headache for all the people.

On the other hand, there are rumors that a large number of counterfeit foreign currencies, especially Pakistani rupees, have been imported to Afghanistan.

Wali Mohammad, a money changer in Kandahar, told Pajhwok Afghan News that many counterfeit rupees had been brought into Afghanistan and it was difficult for ordinary people to identify them.

According to him, in the past, big deals in Kandahar, such as buying and selling houses, land or cars, were done in Pakistani rupees in addition to dollars, but now people have to give up that practice.

He urged people to refrain from using foreign currencies, especially the Pakistani rupee, and instead buy and sell in afghanis to maintain the value of the local currency.

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