Nooruddin Azizi, acting minister of industry and commerce, said that due to international sanctions, Afghanistan and Russia are working to conduct their trade exchanges using local currencies instead of the US dollar.
In an interview with Reuters, Azizi stated that specialized discussions between Kabul and Moscow are ongoing in this regard.
He said, “We are currently engaged in specialized discussions, considering regional and global economic contexts as well as the current challenges facing Afghanistan and Russia. These are focused, technical talks, and I firmly believe this is a very promising option.”
Currently, trade volume between Russia and Afghanistan has reached $300 million. Azizi expressed hope that this figure would increase.
According to him, using local currencies in trade exchanges could, in the long term, contribute to economic stability in Afghanistan and reduce costs for both traders and consumers.
Azizi explained, “Russia has many banks, and about 50 percent or more of them are under sanctions. Some of these banks are sanctioned by the international community. We aim to continue working with the banks that are not under sanctions in order to minimize costs.”
He also emphasized that similar proposals for the use of local currencies in trade have been presented to China, and related discussions have already been held with the Chinese embassy in Kabul.
Azizi noted, “Just as we seek financial connectivity with Russia through local and regional currencies, we also aim for similar arrangements with China. We have made proposals in this area, and one or two rounds of discussions have already taken place. We plan to move forward with China on this front as well.”
Afghanistan’s push to use local currencies in trade with China and Russia comes as economic cooperation with both countries continues to grow. Afghanistan currently has over $1 billion in trade with China alone.