Da Afghanistan Bank will auction $16 million US dollars on Wednesday to keep the local currency rate stable in the market.

“Da Afghanistan Bank will sell the amount of 16 million US dollars by auction on Wednesday. Hereby, eligible banks and exchange and money service companies are requested to participate in this tender and the winners of the auction are obliged to settle their accounts by the end of the auction day,” the bank said in a statement.

“Partial settlement of transactions is not allowed in currency auction auctions, the winners of the bids are obliged to deliver their debt to Da Afghanistan Bank in cash within a certain period,” the bank added.

After the Islamic Emirate took over, Afghanistan's foreign assets were frozen by the United States and other Western powers. IMF blocked the release of $450 million in August.

Subsequently, the value of the afghani fell. The Islamic Emirate banned all foreign currencies to encourage the use of the afghani as national tender. (ILKHA)