Afghans’ purchasing power shrinks with freezing of assets by US

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Kabul, Oct 30 | In the wake of the fall of Afghanistan to the Taliban in August, the US froze the war-torn country’s assets in American banks leading to massive price hikes of basic commodities and a decline in purchasing power.

“Freezing Afghanistan’s assets in America has led to price hike in the local market as the price of one sack flour (50 kg) was 1,200 afghani ($13) but today it costs 2,300 afghani,” Kabul resident Noorzada told Xinhua news agency.

Accusing the US of exacerbating the economic woes in Afghanistan, Noorzada said Washington’s antipathy to the Taliban government in Kabul has virtually deprived ordinary Afghans of their daily income.

Washington has reportedly frozen some $9.5 billion in assets of the Afghan central bank on charges of the presence of terrorist groups, such as Al Qaeda and Islamic State terror groups, in the war-torn country.

Rejecting the US accusation, Zabihullah Mujahid, spokesman of the Taliban interim government, has stressed that the Afghan soil will not be used against any country, including America.

Echoing Noorzada’s concerns, Kabul resident Nazir also blamed the US for the skyrocketing prices, saying that Washington’s double standard policy has caused economic chaos and growing poverty in the already impoverished country.

“We have no economy, no work and no regular income. In the past months, I earned 1,500 afghani each day but nowadays I can hardly earn 400 afghani daily,” Nazir told Xinhua.

Economic hardship is palpable everywhere in conflict-torn Afghanistan including the capital Kabul, as many residents of the capital city are selling their home appliances to survive.

Freezing Afghanistan’s assets by the US, according to Afghans, has made the new administration unable to pay the monthly salaries of government employees and the lack of income has dismayed almost all Afghans.

“The prices of basic needs particularly the food stuff have gone up almost day by day and the reason for growing inflation is freezing Afghan assets by America,” shopkeeper Sayed Abid said.

Source: IANS

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Share Market Closing Bell: Nifty ends around 15,800, Sensex tanks 1,416 pts

Share Market Closing Bell: Nifty ends around 15,800, Sensex tanks 1,416 pts

On the back of Global Clues and SGX, Nifty opened on a gap down note & continued downside momentum throughout the day and closed the session at 15809.40 level with a loss of 430.90. However, Bank nifty closed the session at 33315.65 level with a loss of 848.05 points.

India VIX closed at 24.56 up by 10.13% which is a sign of more volatility in upcoming sessions.47 stocks out of NIFTY 50 closed in RED which suggest broad based selling. All the sectoral indices were ended in the red with metal, IT indices down 4-5 percent.

Despite one way fall, Stocks like ITC, DRREDDY, POWERGRID were the top gainers, While WIPRO, HCLTECH, INFY, TCS & TECHM were prime losers. On a daily chart, Nifty has formed a Bearish candle which indicates downside momentum for an upcoming session. Moreover, Nifty is showing support from horizontal line i.e., 15750 levels which is make or break level. In addition, Nifty has been sustained above the 21-Monthly Moving Average which indicates a bounce back from lower levels can be seen.

However, the momentum indicators MACD & Stochastic were trading with a negative crossover & trading in oversold zone which is a sign of sideways to negative trend in Nifty. The Nifty may find Strong support around 15700 levels, breaching below it can show more downside till 15500 levels while on the upside 16000 may act as an immediate hurdle. On the other hand, Bank nifty has support at 32800 levels while resistance at 34500 levels.

Palak Kothari
Research Associate
Choice Broking

Source: Choice India

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