PESHAWAR: Circulation of the Pakistani rupee has increased in many provinces of Afghanistan after the collapse of banking system in the neighbouring country.
In this regard, Profit while speaking with Afghan currency dealers learnt that traders and the people have started using Pakistani currency in most provinces over the past month due to the Taliban’s restrictions on the banking and money exchange system in Afghanistan.
“Due to fluctuations in dollar and Afghan currency rates, everyone here is using the Pakistani rupee,” one Afghan trader said.
Over the past month, as the Afghani depreciated, so has the exchange rate of the Pakistani rupee, although shopkeepers do not openly accept doing trade in Pakistani rupees.
Small traders and locals in Afghanistan are using Pakistani rupees for daily transactions and purchases of food items.
He further said that provinces adjacent to Pakistan prefer the rupee instead of the Afghani because they will face a 10 per cent loss in converting the rupee to Afghan currency.
Over the years, the use of rupee had decreased at the past government had opposed its use. But now, after the Taliban’s takeover, the situation has been reversed rather quickly.
According to a trader, Hameed Khan, they also need rupees to import goods from Pakistan as both Pakistani and Afghani traders prefer to use the Pakistani currency for trade due to the uncertain situation in Afghanistan.
Khan said that a few days ago, a joint commission was set up by various civilian and military agencies to monitor shopkeepers and the general public who were carrying out transactions in Pakistani currency. “If the Afghan government fails to reactivate the banking system for traders and the general public, it will not only increase the use of rupee but also affect traders’ ability to import goods,” Khan said.
But what for those who do not get Pakistan Rupee, Afghanistan government must try to activate their banking system in order to improve their local money.