Al Jazeera says the turmoil spills into Pakistan’s markets as investors worry it will be isolated in its alleged support of the Taliban.
Afghanistan’s central bank acting governor reportedly departed the country as Taliban fighters took control of the capital, with the rising political turmoil pushing the nation’s currency to a record low.
According to Al Jazeera, the Afghani fell 1.7% Tuesday to 83.5013 per dollar, a fourth day of decline, according to data compiled by Bloomberg. The central bank was told there would be no more dollar shipments on Friday, which curtailed its ability to supply currency and led to more panic, Acting Governor of Afghanistan’s Central Bank Ajmal Ahmady wrote in a Twitter thread.
Ahmady reportedly got on a military plane at the airport where thousands sought to leave as the Taliban’s rapid territorial advance led to the collapse of the government. There was no evacuation plan, and President Ashraf Ghani’s departure without creating a transitional government contributed to the chaos, Ahmady wrote.
“Currency spiked from a stable 81 to almost 100 then back to 86,” the central banker wrote.
Sovereign dollar bonds due 2031 for Pakistan reportedly dropped 1.8 cents on Monday, the biggest decline since the government priced the notes in March. Pakistani dollar bonds were the biggest losers in Asia on Monday, according to a Bloomberg Barclays index. The notes rose 0.2 cents on the dollar on Tuesday to 100.5 cents.
Investors are concerned over any impact on law and order in Pakistan, and whether “global forces will try to isolate Pakistan” due to its alleged support of the Taliban, said Abdul Kadir Hussain, the head of fixed-income asset management at Dubai-based Arqaam Capital.
