Afghanistan’s currency was the best-performing in the world in the third quarter of this year, as foreign aid inflows and strict capital controls helped the afghani recover from the historic lows it reached after the Taliban’s takeover two years ago.
The afghani’s near-10 per cent climb makes it the third-best performing currency this year, behind the Colombian peso and Sri Lankan rupee. Its strengthening helps to bolster the Taliban’s finances as the regime struggles to cope with widespread unemployment.
Its takeover from the US-backed government in 2021 triggered a historic economic collapse, with the country’s gross domestic product immediately contracting by a fifth as international powers withdrew support and imposed sanctions.
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