Afghan Afghani Strengthens Against the US Dollar

The Afghan Afghani has recorded a notable strengthening against the US dollar in recent years, reversing the sharp weakness seen during the early 2020s. According to the World Bank, the currency reached around 104–105 AFN per US dollar in early 2022, before gradually appreciating. By March 2025, the exchange rate had improved to about 71.1 AFN per dollar, compared with 74.8 in January.

The improvement continued later in 2025. The World Bank reported that the Afghani strengthened slightly from 66.5 per dollar in October to 66.4 in November 2025, representing a 2.3% year-on-year appreciation. This means that fewer Afghanis were needed to buy one US dollar than in previous years.

Several factors have contributed to the currency's performance. The World Bank has pointed to foreign-exchange inflows, including international cash shipments and remittances, which helped supply dollars to Afghanistan's economy. Central-bank interventions have also supported the currency. In 2023, around $1.8 billion in UN cash shipments and an estimated $2 billion in remittances helped generate foreign-exchange availability and contributed to a significant appreciation of the Afghani.

However, a stronger currency does not automatically mean that Afghanistan's broader economy has become stronger. The World Bank has warned that appreciation can reduce the competitiveness of Afghan exports and make imported products relatively cheaper. Afghanistan also continues to face a substantial trade deficit. Therefore, the Afghani's rise against the dollar is an important currency-market development, but its benefits and costs for households, businesses and the wider economy remain mixed.