** The Afghani remains stable, but prolonged trade disruptions are driving up prices and impacting food security.
📍 ** Afghanistan
**
The Afghani exchange rate maintained a stable position at AFN 64.8/USD during the third week of April, a small comfort amidst significant economic challenges. However, trade flows are struggling under the weight of ongoing disruptions, largely due to the closure of key border crossings with Pakistan. This has forced a shift towards western and northern corridors for trade, but these alternative routes come with substantial drawbacks – higher transport costs, extended delivery times, and inefficiencies that are straining market functionality. Despite the adjustments, markets remain under considerable stress, with prices elevated as a direct result of these disruptions.
Food prices painted a mixed picture, with overall national average prices seeing minor shifts week-on-week. While some items like cooking oil decreased, wheat-based products – including wheat grain, wheat flour, rice, and sugar – continue to be significantly higher than last year’s levels. This price pressure is particularly acute, driven by reduced supply from neighbouring countries and persistent supply constraints within Afghanistan itself. Vegetable prices experienced a notable decline, driven largely by improved availability, but even these remain substantially elevated compared to the previous year, particularly tomatoes and potatoes.
Beyond food, fuel prices are also a significant concern, with diesel prices rising despite a slight week-on-week decrease. Fertilizer prices are experiencing a considerable uplift year-on-year, impacting farmer affordability. Despite seasonal improvements, labour availability remains below historic levels, suggesting a longer-term economic challenge.
**
Original Source: Link
** #Afghanistan #Economy #TradeDisruptions #FoodSecurity #Inflation #Afghani #RegionalConnectivity #MarketVolatility