Skyrocketing Food Prices in Afghanistan: How Currency Devaluation Is Impacting Everyday Lives

People in Kabul are worried about rising food prices. The value of the Afghan currency has dropped recently, making daily life more expensive. Just this past Monday, the exchange rate reached about 80 Afghanis for one US dollar, a jump from around 70 in previous weeks.

Residents are noticing that basic items are becoming harder to afford. This situation is alarming, especially in one of the poorest nations globally, where many rely on foreign aid. A lot of this aid comes from the United States, and recent decisions by the Trump administration to freeze foreign assistance have left many anxious. Without this support, many fear that the Afghani currency could lose even more value.

Analyst Torek Farhadi, who helped develop the Afghani after the Taliban’s first rule ended in 2001, explained that the drop in value affects day-to-day life significantly. For shopkeeper Abdul Maroof Niaz Zada, the currency changes may seem minor elsewhere but are deeply felt in Afghanistan. He mentioned that prices for essentials like flour, oil, and rice have surged, costing an extra 200 to 500 Afghanis (approximately $2.60 to $6.70).

The World Food Programme reported that nearly 15 million people in Afghanistan are struggling with hunger. The harsh winters make this situation even more critical as they rely on assistance just to get by. Tofan Ahmadi, who works at a currency exchange in Kabul, pointed out that the rising dollar leads to increased prices for everything—food, fuel, and gas.

To address currency stability, the World Bank has emphasized the importance of foreign exchange inflows, whether through remittances, aid, or adding more exports. However, they also highlighted that the country has limited foreign reserves, which makes it vulnerable to external shocks.

Despite the challenges, the Afghan central bank reassured citizens, telling them not to worry about the fluctuations. They even announced an auction of $25 million to help stabilize the situation.