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Why Afghanistan Currency Is Stronger Than Indian Rupee Despite Economic Crisis

Why Afghanistan Currency Is Stronger Than Indian Rupee Despite Economic Crisis

Afghanistan Currency:
It might sound surprising, but Afghanistan’s currency, the Afghan Afghani (AFN), is currently stronger than the Indian Rupee (INR). As of now, 1 Afghan Afghani equals around ₹1.33, which means the value of Afghanistan’s currency is higher than India’s, even though Afghanistan remains one of the poorest countries in the world. This unexpected situation has become a topic of global discussion.


Afghanistan Currency:

The main reason behind this strength lies in the strict monetary policies followed by the Taliban government. After taking control of Afghanistan in 2021, the Taliban banned the use of foreign currencies like the US Dollar and Pakistani Rupee inside the country. All local transactions were made compulsory in Afghani currency, increasing its domestic demand.

Moreover, Afghanistan’s imports are very limited, and the country has minimal trade connections with global markets. Because of this isolation, international market fluctuations don’t impact its currency as much. Economic experts say the smaller economy and lower dependency on international trade help keep the Afghani’s value stable.


On the other hand, India’s currency is deeply linked with global markets. As one of the largest economies in the world, India is connected to international trade, foreign investments, and global financial changes. Any major shift in global oil prices, US monetary policy, or market trends can affect the Indian Rupee’s value.

However, even though Afghanistan’s currency looks stronger on paper, the reality is different. The country continues to face poverty, unemployment, lack of industries, and severe human rights issues. Its economy is small, with little international recognition or growth opportunities. The Taliban’s restrictions and isolation from global trade may be keeping the currency stable, but they have slowed down the country’s overall development.

In short, while Afghanistan’s Afghani may appear stronger than the Indian Rupee, the economic conditions in India are far better. A stronger currency does not always mean a stronger economy — Afghanistan’s case proves this clearly.

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