In a surprising twist, the Afghan Afghani (AFN) has outperformed both the Indian and Pakistani rupees, despite Afghanistan being one of the world’s poorest and most unstable nations.
According to XE.com, 1 AFN equals INR 1.32, meaning 1 lakh Afghani is worth about ₹1.33 lakh in India.
This has raised eyebrows across the region, as Afghanistan — currently under Taliban rule — continues to grapple with poverty, human rights crises, and growing tensions with Pakistan.
Deadly border clashes between the two countries have made global headlines, but the Afghan currency’s unexpected strength is also drawing attention.
Why the Afghani Is Stronger
The surprising strength of the Afghani stems from strict currency control policies enforced by the Taliban since taking power in 2021.
The regime banned the use of US dollars and Pakistani rupees, slashing foreign currency demand and compelling nearly all transactions to be conducted in Afghani.
With limited imports, restricted foreign currency circulation, and an economy that is small and isolated, the Afghani has remained relatively stable.
Unlike India and Pakistan, where currencies are more exposed to global market fluctuations, Afghanistan’s tight currency environment shields the Afghani from external shocks.
The paradox is clear: even as the currency strengthens, Afghanistan remains mired in deep poverty, minimal industrial activity, and severe human rights concerns.
The Afghani’s strength is less a sign of economic prosperity and more a byproduct of isolation and rigid financial control.
