The Afghan government has made similar proposals to China, the minister, Haji Nooruddin Azizi, told Reuters on Thursday. Some discussions have been held with the Chinese embassy in Kabul, he said.
“We are currently engaged in specialised discussions on this matter, considering the regional and global economic perspectives, sanctions, and the challenges Afghanistan is currently facing, as well as those Russia is dealing with. Technical discussions are underway,“ Azizi said in an interview at his office in Kabul.
Azizi added that annual bilateral trade between Russia and Afghanistan was currently around $300 million and that was likely to grow substantially as the two sides boost investment. His administration expected Afghanistan to buy more petroleum products and plastics from Russia, he said.
“We want to take steps in this area with China as well,“ he said, adding Afghanistan had around $1 billion in trade with China each year. “A working team composed of members from the (Afghan) Ministry of Commerce and the Chinese embassy which is an authorized body representing China in economic programmes has been formed, and talks are ongoing.”
Rivalry with China and fallout from Russia’s war in Ukraine have put the dollar’s status as the world’s dominant currency under fresh scrutiny in recent years. In December, Russian President Vladimir Putin questioned the need to hold state reserves in foreign currencies since they could easily be confiscated for political reasons, saying that domestic investment of such reserves was more attractive.
Afghanistan since 2022 has imported gas, oil and wheat from Russia, the first major economic deal after the Taliban returned to power facing international isolation following 20 years of war against U.S.-led forces.
Development agencies and economists say the Afghani currency has so far remained relatively stable but may face challenges in future.
Azizi said that the stability of the currency and his administration’s efforts to boost international investment including with the Afghan diaspora, would prevent a shortage of U.S. dollars in the country.
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