As Afghanistan has been dealing with western sanctions and no foreign aid, the local currency-Afghani- hit the lowest level against US dollar in the past twenty years, with 1$ trading for 95 Afghani.
To prevent the plummeting move of the local currency, ten central banks of Afghanistan-De Afghanistan Bank- announced to be auctioning $10 million on Tuesday, November 16.
In a statement released by the bank, private banks and forex traders were asked to participate in the bidding.
The bidders will be paying Afghani for the amount of dollars they buy in the auction.
In the meantime, economic analysts suspect that the auction will not be beneficial as the dollars will be trafficked abroad and will have less impact on the value of the local currency.
It is worth mentioning that the previous Afghan government would auction this amount of dollars every week but did not impact the local currency due to vast corruption.
It comes as the Human Rights Watch has asked the United Nation to ease financial restrictions on Afghanistan as people are suffering from critical malnutrition, unemployment, and high prices of food and fuel.