Walking through Kabul’s Sarai Shahzada money market today, you wouldn't necessarily feel like you’re standing in one of the most sanctioned economies on the planet. The shouting of money changers, the rustle of bundled notes, and the frantic clicking of calculators create a chaotic symphony that defines the dollar rate in Afghanistan.
Honestly, it’s a bit of a financial miracle, or at least a very strange anomaly. While neighboring currencies have been tumbling, the Afghan Afghani (AFN) has stayed surprisingly stubborn. As of January 18, 2026, the rate is hovering around 66.40 AFN to 1 USD.
If you’d asked an economist back in 2021 where the rate would be now, most would have bet on a total collapse. They were wrong. But the stability we’re seeing isn't exactly "normal" economic health. It's a mix of aggressive central bank intervention, a massive influx of humanitarian cash, and some of the world's strictest capital controls.
The Reality of the Dollar Rate in Afghanistan Right Now
To understand why the dollar costs what it does in Kabul, you have to look at the "auction" system. Da Afghanistan Bank (DAB), the country's central bank, basically acts as the lungs of the economy. They breathe dollars into the market to keep the Afghani from suffocating.
Just this past week, we saw the DAB auctioning off anywhere from $14 million to $16 million at a time. They do this regularly. By dumping USD into the Sarai Shahzada market, they soak up excess Afghanis, keeping the local currency's value artificially propped up. It’s a classic supply-and-demand play, but it’s fueled by a very specific source: the UN "cash flights."
These flights are literally planes landing at Kabul International Airport carrying pallets of US dollar bills. Since the formal banking sector is still largely cut off from the SWIFT international payment system due to sanctions, the UN brings in physical cash to fund humanitarian operations.
Why the Afghani Isn't Crashing (Yet)
It’s tempting to think a strong currency means a strong economy. In Afghanistan, that’s a dangerous assumption. The dollar rate in Afghanistan is stable because the demand for dollars is being suppressed by force.
- Ban on Foreign Currency: You can't legally use dollars for domestic transactions anymore. If you're buying groceries in Herat or paying rent in Kandahar, it has to be in Afghanis. This forces people to hold the local currency even if they don't trust it long-term.
- Export Restrictions: It’s incredibly hard to get large amounts of cash out of the country. This prevents "capital flight," which is usually what kills a currency when a government changes.
- Humanitarian Floor: The roughly $40 million a week that has historically arrived via aid provides a constant "floor" for the currency. Without this, the Afghani would likely be trading at 100+ to the dollar.
Comparison: AFN vs. Regional Neighbors
If you look at the Iranian Rial or the Pakistani Rupee over the last two years, they've been through the wringer. High inflation and political instability sent them into a tailspin.
Meanwhile, the Afghani has actually appreciated in some windows. In early 2025, it was trading closer to 72. Now, in early 2026, it’s stronger at 66. This defies the logic of a country with a 40% unemployment rate and shrinking GDP per capita.
Basically, the Taliban administration has prioritized currency stability above almost everything else. They know that if the dollar spikes, the price of bread and fuel spikes with it. In a country where half the population needs food aid to survive, a currency crash isn't just an "economic indicator"—it’s a death sentence for thousands.
The Sarai Shahzada Factor
You can't talk about the dollar rate in Afghanistan without mentioning the "Sarafi" system. Since the formal banks like Pashtany Bank or New Kabul Bank are crippled by international restrictions, the informal Hawala dealers are the real central bank of the streets.
If you go to the Sarai Shahzada today, the "Buy" rate is often slightly lower than the official DAB rate, maybe around 66.30, while the "Sell" rate might touch 66.55. These margins are tight. It shows that even in an informal market, the liquidity is being managed tightly.
What Does This Mean for You?
If you’re an expat, a remote worker, or someone sending remittances via services like Western Union or Remitly, this stability is a double-edged sword.
On one hand, your dollars don't "go as far" as they used to. A couple of years ago, $100 might have gotten you nearly 9,000 Afghanis. Today, it gets you about 6,600. That’s a significant drop in purchasing power for those receiving help from family abroad.
On the other hand, the prices of imported goods—which is basically everything in Afghanistan—haven't spiraled out of control as much as they could have. If the dollar rate hit 100, a bag of flour would double in price overnight.
Actionable Insights for 2026
If you're dealing with the Afghan market or sending money, here is the "on-the-ground" reality you should keep in mind:
- Monitor Auction Days: Da Afghanistan Bank usually announces auctions on their official website or via X (formerly Twitter). Rates often fluctuate slightly around these days. If you're exchanging a large amount, wait for the post-auction "dip" in the dollar value.
- Avoid Formal Banks for Cash-Out: While DAB is pushing digital payments and "cash-to-cards" initiatives, the infrastructure is still spotty. Most people still find the Hawala money changers faster and more reliable for getting physical AFN.
- Hedge Against Aid Cuts: The stability of the dollar rate in Afghanistan is entirely dependent on the continuation of UN cash flights. If there is a political spat that leads to a pause in aid, the Afghani will drop instantly. Don't keep all your savings in AFN if you can help it.
- Check Multiple Markets: The rate in Kabul is the benchmark, but if you’re in Mazar-i-Sharif or Jalalabad, the rate might be 0.50 AFN different due to local supply.
The Afghan Afghani is currently a "managed" currency in every sense of the word. It is stable because it has to be, not because the underlying economy is booming. For now, the 66-67 range seems to be the "comfort zone" for the central bank. As long as the planes keep landing with cash, don't expect a massive breakout in either direction.
To stay ahead, keep a close eye on the weekly UN aid reports. Any talk of "reducing cash shipments" is your signal that the dollar is about to get a lot more expensive in Kabul.
Data Sources & References:
- Da Afghanistan Bank (DAB) Daily Exchange Bulletins (January 2026)
- World Bank Afghanistan Development Update (Late 2025)
- Sarai Shahzada Money Changers Union Market Reports
- UNAMA Humanitarian Funding Tracking
Disclaimer: Exchange rates change by the minute. The figures provided reflect the market conditions at the time of writing. Always verify with a local dealer before making large transactions.