Afghani Currency Surpasses Indian Rupee — 1 AFN Now Equals ₹1.33

How It Happened

The Afghani’s strength has been rising steadily through 2024 and into 2025, driven by a combination of strict monetary controls, foreign remittance inflows, and limited imports that have helped maintain a favorable exchange rate.
Meanwhile, the Indian Rupee has been under pressure due to a widening trade deficit, global oil price fluctuations, and persistent inflation concerns impacting the broader economy.

Economic Context

Afghanistan’s central bank has maintained tight restrictions on foreign exchange movement since 2021, which, though controversial, has helped stabilize the Afghani.
On the other hand, India’s dependence on energy imports and recent geopolitical challenges have weighed on the rupee, making this shift possible.

Market Impact

Economists caution that while the Afghani’s appreciation may look impressive, it does not necessarily reflect stronger economic fundamentals. The currency’s limited convertibility and controlled environment differ significantly from India’s free-market exchange system.

Still, the psychological impact is clear — the Afghani surpassing the Rupee marks a historic milestone and has sparked major discussions across financial circles in South Asia.