• publish: 3 August 2016
  • time: 6:25 pm
  • category: Economy
  • No: 4074
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Money laundering, main reason behind the USD surge in Afghanistan

Economy experts in Afghanistan say illegal and un-scrutinized out-taking of the US currency from Afghanistan is the main reason behind the USD surge in exchange rates in Afghanistan.

A Kabul university professor who specializes in economy and also wished not to be named told Raha that illegal and un-scrutinized out-taking of the US currency from Afghanistan has been the main reason behind the USD surge in exchange rates in Afghanistan.

 

Most these illegal out-taking is done by certain people to launder their money in Afghanistan, he said.

 

He pointed out to the recent closure of Saraye Shahzada market, the only place in Kabul where millions of dollars change hands every minutes and people refer there to do Hawala/send or receive money from and to abroad, just like western union system, but it is not computerized “during past two days, individuals have not been able to send out their dollars, and it caused a drastic dive in dollars exchanging rate within Afghanistan.”

 

It is interesting to know that Afghanistan central bank often refers to Saraye Sahzada market to announce daily foreign exchange rates in the country.

 

As usual, Afghanistan central bank today (August 3) announced the exchange rate, in which there was a drastic dive in USD comparing to that of two days ago.

 

The recent downfall is unprecedented in past months, according to him.

 

He suggests if the Afghan government is determined to control the fall and surge of foreign currencies in the country, then it should close Saray-e-Shahzada and put Central Bank in charge of providing the needed amount of foreign currencies.

 

He also recommends all illegal money exchangers be removed and private banks do the job.

 

He says more than $100.00 billion entered Afghanistan during recent years, but was taken out in variety of ways without being invested in the country.

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