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Afghanistan

Afghanistan: Countrywide Monthly Market Price Bulletin: Issue 37 (June 2023)

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(Excerpt)

AFGHANISTAN MACROECONOMIC OVERVIEW

Inflation and Exchange Rate Trend

The headline (non-food commodities) in Afghanistan has shown a significant decline, dropping from 18.3% in July 2022 to -2.8% in May 2023. This decline in inflation is accompanied by a decrease in prices of basic household items on a year-on-year basis. In addition, the food inflation exhibited a substantial decline since its peak in July 2022.

Based on the World Bank Economic Monitor, essential food and non-food commodities remain widely available in major markets across the country, as reported by the Third-Party Monitoring Agent (TPMA).

AFN has slightly appreciated against USD in June 2023

As of June, 2023, the exchange rate between the Afghan Afghani (AFN) and the US dollar (USD) was recorded at 86.3, which is almost the same as its rate in August 2021, remaining at stable level since its surge in Jan 2023.

The stability of the AFN began to take hold between Jan and Mar 2023 when UN cash shipments began. During the period of January to May 2023, approximately USD 760 million (equivalent to approximately USD 150 million per month) was brought into the country. These cash inflows have contributed to maintaining the stability of the local currency.