Afghanistan’s Central Bank has announced that it will auction $16 million on Tuesday through a competitive bidding process as part of its regular foreign exchange market operations.
In a public statement, the bank invited eligible commercial banks, licensed exchange companies and money service providers to participate in the auction.
The Central Bank has routinely injected U.S. dollars into the market in an effort to manage foreign currency liquidity and reduce volatility in the value of the Afghan afghani against major international currencies.
The bank did not disclose additional details regarding the auction’s bidding procedures, the opening price or other participation requirements.
Regular foreign currency auctions have become one of the Central Bank’s primary monetary policy tools to help maintain exchange-rate stability amid Afghanistan’s fragile economic conditions.
